BNY Mellon To Launch Digital Asset Custody Platform

By Kevin • February 26, 2022 9:02 pm • Comments

Earlier in the year, major asset management firm Blackrock has revealed their involvement in crypto and how they would start providing financial services related to the sector to their clients.

Recently, a prominent investment bank, BNY Mellon, also announced their entry into the crypto space indicating that major financial institutions all have their attention on the emerging industry now and that we may soon see a major transformation when a majority of them get involved.

Regarding BNY Mellon’s specific plans, the company revealed that they are developing a digital asset custody platform that will essentially their institutional clients to easily add crypto to their management portfolios.

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In addition, they would be able to store these digital assets directly into BNY Mellon crypto wallets which will be accessible for various reasons within the platform.

CoinTelegraph reports:

According to a report from City A.M., customers will be able to store the world’s most popular cryptocurrencies, Bitcoin (BTC) and Ether (ETH), in BNY Mellon crypto wallets, which will be powered by Fireblocks technology.

However, once regulatory approval has been granted, the service will gradually increase and integrate a variety of tokenized traditional and digital assets.

The new service, according to the investment bank, is expected to be offered later this year. BNY Mellon also suggested it will be “the first to enter” the global digital custody market.

According to the report, Mellon intends to begin with the United States before expanding worldwide based on demand.

After the American debut, BNY Mellon head of digital asset custody Talia Klein predicts that the service might extend to the United Kingdom:

“I think what we’re seeing in the UK is that there’s a really vibrant and active digital assets market here.”

The investment banking firm had also previously shown interest in managing cryptocurrencies as an asset manager on behalf of its clients.

As a result, the firm had launched a Bitcoin investment product with a collaboration with Grayscale Investments and had also partnered with the firm Chainanalysis to create a risk management system for crypto.

This recent news could be considered quite significant for crypto investors and traders in general because BNY Mellon would now be considered the first to get involved in the digital custody market as a large financial institution.

This could help entice and pave the way for many other institutions to join this movement in the future which would accelerate the growth of the industry.

CoinSpeaker reports:

Also, recent reports have it that BNY Mellon had partnered with blockchain data platform Chainalysis to help track and analyze crypto products. Utilizing Chainalysis’ compliance software within its risk management system, BNY Mellon seeks to track user crypto transactions.

Chainalysis’ suite of resources currently includes ‘Know Your Transaction’, which sifts through data to determine if withdrawals or deposits are “high risk”.

The KYT feature can block a transaction if it identifies a crypto transfer to a sanctioned wallet address.

BNY Mellon currently has more than $46 trillion in assets under custody. The banking giant is also the world’s largest holder of securities, commodities, and cash.

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