With the launch of the digital custodian platform, the oldest bank in the United States has begun to protect cryptocurrencies for selected clients by itself. This makes it the first major US bank to offer its clients both traditional investments and digital assets on the same platform.
BNY Mellon recently received approval from the New York Financial Conduct Authority to accept bitcoin and ether from select clients. The bank will keep the necessary keys in a safe place Private incubation platform Save it for clients. It also provides the same digital currency accounting services that it provides to fund managers for their portfolios of stocks, bonds, commodities and other assets.
A milestone in institutional adoption
The move marks a major milestone for traditional banks and another step in the growing adoption of digital assets as a legitimate asset class. While some Wall Street executives remain skeptical about the potential of cryptocurrencies, the growing area regulation New confidence. This is reflected in the increasing participation of conventional banks in the United States.
One current scan BNY Mellons underscores the already significant institutional demand for a stable and scalable financial infrastructure that can accommodate both traditional and digital assets. Accordingly, almost all institutional investors (91%) are interested in investing in tokenized products. In addition, 41% of institutional investors already hold cryptocurrency in their portfolios today, and another 15% plan to add digital assets to their portfolios in the next 2-5 years.
“BNY Mellon touches over 20% of the world’s investable assets and has the scale to reshape financial markets through blockchain technology and digital assets. We look forward to driving the financial industry forward as we embark on the next chapter of our innovation journey.” – Robin Vince, CEO and President, BNY Mellon
BNY Mellon: The world’s largest custodian
Founded more than two centuries ago by Alexander Hamilton, BNY Mellon is the world’s largest trustee. Worked closely with leading financial technology companies in the market. The company has engaged cryptocurrency specialists Fireblocks and Chainalysis to combine their technologies to meet customers’ current and future digital asset security and compliance needs.
Fund managers have long relied on BNY Mellon and other custodians. They provide a number of important back office functions, such as monitoring changes in the value of their assets. Until now, fund managers had to hold their digital currencies by a cryptocurrency professional. According to BNY Mellon, this makes it the first of the eight systemically significant US banks to hold digital currencies themselves and enable its clients to use a single custody platform for all assets.