BNY Mellon, the world’s largest custodian bank, announced that it is now accepting select clients’ Bitcoin (BTC)and Ethereum (ETH) deposits. The bank got approval from New York’s financial regulator to offer cryptocurrency custodial services this fall.
BNY’s CEO of Asset Servicing and Head of Digital, Roman Regelman stated that the bank will provide integrated services for digital assets due to clients’ growing demands.
The bank has been preparing for this since 2021 when it formed its Digital Assets Unit to develop solutions in partnership with blockchain companies Chainalysis and Fireblocks.
About BNY Mellon
The Bank of New York Mellon Corporation, commonly known as BNY Mellon, was created in July 2007 with the merger of Bank of New York and Mellon Financial Corporation. It has over $43 trillion in traditional assets under custody. The Bank of New York’s origin can be traced back to 1794 when it was founded by Alexander Hamilton. With 230 years of history, it has the prestige of being the oldest continuously operating financial institution in the US.
Before it was acquired, the Mellon Financial corporation, founded and headquartered in Pittsburg, Pennsylvania, was once one of the largest banks in the US. It was founded by Thomas Mellon.
Chainalysis provides data platforms, software, and research to government agencies and private institutions in over 70 countries Its services have been used to solve some of the world’s most high-profile criminal cases.
It was founded in 2014 by Michael Gronager and it has its headquarters in New York City.
Fireblocks, a leader in blockchain security services, was co-founded by Idan Ofrat, Michael Shaulov, and Pavel Berengoltz in 2018. The company was created to help financial institution protect their assets from thefts or hackers.
Is This the Future of Banking?
BNY Mellon, a well-respected banking institution, will certainly strengthen the image of the crypto space. Partnering with Chainalysis and Fireblocks addresses the issue regarding compliance and security. New York’s financial regulators giving a green light on crypto custody is also good news.
Banks arguably present a façade of stability and security. This is the reason depositors are choosing banks to take custody of their assets. New York (NYC) as a city is seen as a major financial hub with strict regulations. Put the two names together and you have an image that invokes trust.
In the past banking custody services are limited to traditional financial instruments like fiat, commodities, and bonds. BNY Mellon’s acceptance of cryptocurrency is an indication that digital assets are slowly being accepted as part of mainstream investments.