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BNY Mellon launches a crypto custody service

The oldest bank in the United States, BNY Mellon, launches a bitcoin custody service.
| Cryptopress
Updated: October 12, 2022

CryptoPress

The oldest bank in the United States is starting to offer services for digital currency to its clients.

BNY Mellon, which has been around since 1784, is making a cryptocurrency custody service that will let customers keep Bitcoin assets and other investments on the same platform. On Tuesday, the bank issued a press statement introducing its new platform, Digital Asset Custody.

The offering is a response to the growing interest in the new asset category from institutions. A new poll by BNY Mellon shows that almost all institutional investors (91%) are interested in investing in tokenized goods, and 41% already have cryptocurrencies in their portfolios.

This study found that 15% more of the people who took part want to buy digital assets in the next two to five years. Robin Vince, CEO and Chairman of BNY Mellon, issued a statement about the incident.

BNY Mellon manages more than 20% of the world’s investable assets, so it has the size to use Blockchain technology and digital assets to change the way financial markets work. As we move into the next part of our innovation journey, we’re excited to help the financial sector move forward.

BNY Mellon and cryptocurrency custody

According to a Wall Street Journal (WSJ) article that was picked up by many media sites, the launch occurred after the banking behemoth received clearance from the New York financial regulator.

Last year, BNY Mellon initially announced its intention to provide a cryptocurrency custody service. The statement says that since then, the bank has worked with many businesses in the digital asset industry to achieve the goals. The bank has teamed up with Fireblocks and Chainalysis provides a solution with strong security and compliance requirements for its customers.

According The Block says the bank uses software made with Fireblocks to store the keys that are needed to access and move digital assets.

Some bank customers can now use the platform to keep their Bitcoin and Ethereum money safe. This week, the portal purportedly launches with chosen investment fund companies. The bank is also thinking about letting other customers use crypto custody if regulators give them permission to do so.

The WSJ said that BNY Mellon, the world’s largest custodian bank with over $43 trillion in assets under custody, is the first of eight major US banks to let clients use a custody platform for both traditional and cryptocurrency holdings.

The bank is the latest traditional financial giant to try to get a foothold in the cryptosphere. It has been around for more than 250 years. As interest and demand for the new asset class grow, some of the biggest names on Wall Street are now trying to offer bitcoin services to institutions.

A few weeks ago, Citadel, Charles Schwab, and Fidelity unveiled their cryptocurrency exchange, EDX Markets (EDXM), as a clear indication of their intent to join the market. A few weeks ago, BlackRock, the biggest asset manager in the world, said it would work with Coinbase to offer its customers trading services for cryptocurrencies.

BNY Mellon Center, Pittsburgh” by Tony Webster is licensed under CC BY 2.0.

© 2022 Cryptopress. For informational purposes only, not offered as advice of any kind.

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