Financial Giant BNY Mellon to Offer Crypto Custody Services
The oldest bank in the United States, with 238 years of history, is about to create the first platform to link custody of digital and traditional assets.
The bank has created a digital asset unit to create solutions for the technology behind digital assets. The unit aims to introduce the first platform to connect the custody of digital and traditional assets.
Robin Vince, CEO and president of the bank, said:
“By tapping into more than 20% of the world’s investable assets, Bank of New York Mellon has the scale to reimagine financial markets through blockchain technology and digital assets. We are excited to help evolve the financial industry as we begin the next chapter of our journey to innovation.”
A recent BNY Mellon survey reveals significant institutional demand for financial infrastructure that is scalable and designed to support both traditional and digital assets. According to the survey, nearly all institutional investors (91%) expressed interest in investing in tokenized products. Additionally, 41% of institutional investors currently hold Bitcoin (BTC) in their portfolios, and another 15% expect to make a purchase in the next two to five years.
Until now, traditional fund managers interested in owning digital assets have typically had to find a custody services company that specializes in cryptocurrencies. Typically, these fund managers would rely on Bank of New York Mellon or other custodial lenders to perform the necessary back office tasks associated with their typical securities holdings.
Along with performing other standard accounting tasks, BNY Mellon will now be able to offer these fund managers custody of the keys needed to access and move their Bitcoin (BTC) and Ethereum (ETH) tokens.
The bank uses software developed in conjunction with Fireblocks to store these digital holdings, according to BNY Mellon. Chainalysis’ software will help analyze and track the path the assets take before arriving at the bank.