America’s oldest bank, BNY Mellon, is strengthening its crypto offensive by expanding its stablecoin services to institutional investors. The new partnership with Circle now enables minting and redemption of USDC directly from the bank’s institutional custody platform.
Institutional Adoption Accelerates
This is no simple experiment. BNY Mellon, with over $2 trillion in assets under custody, is integrating stablecoins into its traditional service offering. Institutional clients can now create and redeem USDC directly, without going through an exchange or third-party intermediary.
This announcement is part of a broader trend of stablecoin adoption by traditional finance. In the same vein, J.P. Morgan has expanded its blockchain settlement network (Onyx) to modernize cross-border payments using dollar deposit tokens. This development comes as Wall Street seeks to diversify amid geopolitical uncertainties.
Stablecoins: The New Infrastructure War
The arrival of major banks in the stablecoin market changes the competitive landscape. Where Circle and Tether dominated the market with respective volumes of $30 and $110 billion in USDC and USDT, the entry of regulated custodians like BNY Mellon brings new legitimacy to the asset class.
The market implications are multiple: reduced counterparty risk, native integration with existing banking systems, and increased institutional liquidity for crypto-asset trading.
What Future for Stablecoins in Europe?
Meanwhile, the BIS (Bank for International Settlements) has issued a warning about the risks of global financial system fragmentation linked to stablecoins. European regulators, under the incoming MiCA framework, are imposing strict rules on stablecoin reserve composition, which could limit the expansion of USDC and USDT in Europe.
The balance between institutional adoption led by BNY Mellon and growing regulatory pressure will determine the trajectory of stablecoins in the second half of 2026.
DailyCryptoNews provides information, analysis, and educational content. No published content constitutes investment advice, financial recommendation, or solicitation to buy or sell any asset.
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