BNY Mellon, one of the world’s largest and oldest banks, has expanded its services to support Circle, the issuer of USD Coin (USDC).

This move will allow select clients to process US dollar payments directly through BNY Mellon for the creation and redemption of USDC stablecoins, reinforcing the bank’s role in bridging traditional finance with digital assets.

According to an official statement, "BNY Mellon and Circle continue to collaborate to connect the traditional and digital financial ecosystems. They are exploring deeper integrations that will benefit financial markets."

This expanded banking service is expected to attract more institutional investors to Circle, especially ahead of its anticipated initial public offering (IPO). Additionally, BNY Mellon’s involvement could boost crypto-related deposits, signaling greater acceptance of digital currencies within mainstream banking.

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BNY Mellon’s collaboration with Circle dates back to April 2022, when the bank was appointed as the primary custodian for Circle’s USDC reserves.

This move was part of an effort to enhance transparency and integrate stablecoins within the traditional financial system. At the time, BNY Mellon stated that the partnership aligned with its broader strategy of supporting digital assets while ensuring regulatory compliance and risk management.

The latest expansion of services builds on this foundation, further connecting traditional banking infrastructure with blockchain-based financial products. As stablecoins gain traction in global markets, BNY Mellon’s role in handling USDC transactions reflects the growing overlap between conventional finance and digital currencies.