BNY Mellon has added USDC minting and redemption capabilities to its institutional custody platform, according to Cointelegraph. The integration allows clients to mint new USDC tokens and redeem them directly within the bank's existing custody infrastructure, eliminating the need to move assets between platforms to access Circle's stablecoin.
The move builds on BNY Mellon's existing role as the primary custodian of USDC reserves, meaning the bank physically holds the dollar deposits backing each token in circulation. By housing both custody and minting on the same platform, the bank reduces friction for institutions already storing assets there.
Circle, the stablecoin issuer, benefits from deeper integration with one of the world's largest custody providers. For BNY Mellon, the addition extends its service portfolio in stablecoins at a moment when institutional demand for on-chain dollar rails continues to grow. The move does not represent a new custody relationship but rather a consolidation of services already operating in parallel.
The integration sits alongside a broader institutional pivot toward stablecoins as infrastructure. Banks and custody providers have accelerated stablecoin offerings as clients seek faster settlement and on-chain liquidity without leaving traditional financial rails. USDC trades near $0.9997, according to market data, and ranks fifth by market cap among all cryptocurrencies.
For institutions using BNY Mellon's platform, the change simplifies workflows by eliminating a separate step to access minting and redemption. The bank did not announce new pricing, feature limits, or deployment timelines in materials reviewed. Clients seeking to use the service would need to confirm availability and terms directly with the bank.