Yesterday, New York’s financial regulator gave BNY Mellon its approval to launch its bitcoin custody services. About two and a half centuries old, this depositary bank is among the first American institutions of the same ilk to want to meet the growing demand for services related to cryptocurrencies.
BNY Mellon (BK.N) offers cryptocurrency custody services
wall street journal today announced that Bank of New York Mellon (BNY Mellon) has received approval from the city’s financial regulator of the same name to offer bitcoin custody services.
” BNY Mellon won approval from the New York financial regulator earlier this fall to begin receiving bitcoin and ether from select customers starting this week. […] The bank will store the keys needed to access and transfer these assets, and provide the same accounting services on these digital currencies that it offers to fund managers for their portfolios of stocks, bonds, commodities and other assets “, was taken from the report.
In L’WSJ articlethe administrators of this banking institution had specified that BNY Mellon will start receiving cryptoassets from October 11.
Note that the 238-year-old bank that is BNY Mellon had already prepared before taking the plunge. Last year, she formed a team to develop digital asset technology solutions. To do this, this banking institution used Hashdex, Fireblocks and Chainalysis.
For now, BNY Mellon will be content to develop these crypto custody services alongside these traditional investment products. But in a short time, it will also integrate tokenized assets into its ecosystem. Michael Demissie, head of digital assets and advanced solutions at the world’s largest custodian bank, remains confident. According to him, 90% of BNY Mellon’s institutional investors intend to invest in this segment.
CZ, the boss of Binance, was delighted with this news.
Large institutions increasingly attracted to bitcoin
Indeed, more and more financial institutions are starting to turn to cryptocurrencies at the moment. For example, there is BlackRock, which in August decided to launch its bitcoin trading and custody services. The world’s largest asset management company had to ask Coinbase for support in order to make it happen.
BlackRock (BLK.N) also launched a private bitcoin trust some time later. It has over $10 trillion in assets under management (AUM).
Its administrators seemed aware of the stakes of bitcoin at the time.
” Bitcoin is the oldest, largest and most liquid crypto-asset, and is currently the primary focus of our clients in the crypto-asset space. “, they had declared.
On September 20, Bitcoin Magazine revealed that Nasdaq also plans to offer cryptocurrency custody services for institutions. Admittedly, this exchange has already been present in the crypto market for some time, but the fact remains that this crypto custody service project will certainly strengthen its position in the sector.
Now, Coinbase, Gemini, Binance, and BitGo no longer have a monopoly on cryptocurrency custody services. In effect, financial behemoths like BlackRock, Nasdaq and BNY Mellon have decided to integrate these assets into their ecosystem. Many are hoping for an acceleration in adoption among institutional investors in the near future.
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