BNY Expands Institutional Stablecoin Services With Circle USDC Custody

BNY launched its Digital Asset Custody platform in the United States on Oct. 11, 2022, allowing select clients to hold and transfer bitcoin and ether alongside traditional assets. Adding staking would extend the offering from safekeeping into yield-generating blockchain participation, an important step as established banks bring digital assets under institutional controls for governance, compliance and operational resilience. As of June 30, 2026, BNY oversaw $62.6 trillion in assets under custody and/or administration and $2.2 trillion in assets under management.

BNY and Galaxy Digital announced on Aug. 4, 2026, a collaboration to add institutional staking to BNY’s Digital Asset Custody platform. Eligible assets will remain within BNY’s custody framework while clients use Galaxy’s proof-of-stake validator infrastructure to earn network rewards. Galaxy will also serve as a design partner for BNY’s broader digital-asset platform, helping shape the underlying infrastructure. The companies did not disclose supported tokens, fees, a launch date or the financial terms of the agreement.

Traditional financial institutions were once cautious about cryptocurrencies, but rapid growth in digital-asset markets has made stablecoins a vital bridge between conventional finance and blockchain networks. Major banks are no longer debating whether stablecoins belong in the financial system. Instead, they are considering how to integrate them into existing settlement infrastructure. The shift could lower cross-border payment costs, speed up transactions and help traditional banks avoid being marginalized in a future tokenized financial system.

BNY announced a partnership with Circle to support USDC on June 29, 2026. Standard Chartered then became the first global systemically important bank to offer USDC minting and redemption services in Dubai on July 2. Zodia Markets, a platform affiliated with the group, minted $4 billion in USDC in 2024. European financial institutions are also actively developing euro-denominated stablecoins to retain a leading role in tokenized finance.