BNY has added Circle USDC minting and redemption functions to its digital asset custody platform for institutional clients.

Cointelegraph reported on Sunday that institutional clients can convert U.S. dollars into USDC through BNY and redeem USDC back into dollars.

BNY expanded its service to support USDC minting and redemption in addition to its existing custody and transfer functions. USDC is the first stablecoin supported on the BNY platform. BNY plans to expand the service into other stablecoins and digital cash operations.

The move also expanded the scope of cooperation between BNY and Circle. BNY has served as a key custodian of USDC reserve assets and will now provide stablecoin services to clients beyond holding the reserves.

BNY said it has $59.3 trillion in assets under custody and administration and provides services to more than 90 percent of Fortune 100 companies. DefiLlama data shows USDC circulation exceeds $73.8 billion. USDC is the world’s second-largest stablecoin by market capitalisation.

BNY said in May it would develop institutional custody services for bitcoin and ether with Abu Dhabi’s Finstreet and the ADI Foundation. The plan at the time also included adding support for stablecoins and tokenised real-world assets.