Institutional Interest in Digital Assets Remains Strong – BNY Mellon
The head of Digital Assets at BNY Mellon stated that the crypto market fall in 2022 will not affect institutional interest in digital assets.
At a conference held by Afore Consulting, Demissie stated that the digital asset industry is here to stay and that institutional investors have a strong interest in cryptocurrencies.
BNY Mellon survey supports Demissie’s views
A survey conducted by the bank in October 2022 found that 91% of custodian bank clients are interested in investing in blockchain-based tokenized products. Additionally, 86% of institutional players are adopting a “buy and hold” strategy, indicating that they see the cryptocurrency market as a long-term play. 88% of those surveyed also stated that the severe cryptocurrency market downturn in 2022 did not change their plans to invest in the digital asset sector over the long term.
Clear regulation needed
While Demissie is optimistic about the future of the digital asset industry, he also acknowledges the need for clear and precise regulations and rules to be established in Washington, D.C.
He believes responsible actors are needed to provide reliable services that can live up to investors’ trust.
BNY Mellon’s commitment to digital assets
BNY Mellon recently announced the appointment of Caroline Butler as the firm’s CEO of Digital Assets, who will help drive the next wave of adoption for the bank’s clients.
— BNY Mellon (@BNYMellon) February 2, 2023
BNY Mellon also launched its own digital custody platform in October 2022, offering selected institutional clients the opportunity to invest in Bitcoin (BTC) and Ethereum (ETH).
The bank also partnered with the on-chain metrics platform Chainalysis to help track and analyze cryptocurrency products.
Other major banks making moves in digital assets
BNY Mellon is not the only big bank making moves in the digital asset industry. Goldman Sachs has reportedly expressed interest in buying cryptocurrency firms, and JPMorgan has recently dabbled with blockchain-based services, including successfully executing its first-ever cross-border transaction using decentralized finance (DeFi) on a public blockchain.
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