The oldest bank in America, Bank of New York Mellon Corporation, better known as BNY Mellon, announced that financial institutions can now hold cryptocurrencies. BNY Mellon has been approved by the New York State Department of Financial Services (DFS), a Wall Street Journal report on Tuesday says, and the bank said it was the first of eight major financial firms to start custodial services for crypto assets.
BNY Mellon starts custody services on Bitcoin and Ethereum on behalf of its clients
Last fall, New York financial regulator DFS BNY Mellon (NYSE) gave: BK) Approval of keeping cryptocurrencies and a Report published by the Wall Street Journal (WSJ) says the bank is ready to go. BNY Mellon will store the private keys of the crypto-asset owner, according to the report, in a similar way to the way it manages bonds, stocks and other types of assets on behalf of its clients.
BNY Mellon is the oldest US bank founded in 1784 by Alexander Hamilton, and manages over $40 trillion nominal assets. In 2021, the financial giant had $2.4 trillion in assets under management (AUM). The report, written by Wall Street Journal contributor Justin Baer, shows that BNY Mellon says it is the first eight “systemically significant” banks in the United States approved by financial regulators to hold digital assets.
BNY Mellon has been in the cryptocurrency space for some time and in October 2021 urged the authorities in Ireland to adopt regulatory standards for crypto assets ahead of EU regulations. In April 2022, the bank was selected by Circle Financial to hold stablecoin (USDC) reserves. The following month, BNY Mellon joined forces with banks such as Wells Fargo and Citi when it invested in an institutional digital asset technology provider called Talos.
A Wall Street Journal report published on Tuesday says BNY Mellon is leveraging Fireblocks in its custody solution. Moreover, it also uses software developed by Chainalysis for monitoring in the blockchain so that it can analyze crypto assets located within the confines of the bank. In addition to stating that it will use Fireblocks and Chainalysis, the financial institution also indicated that it will initially hold Bitcoin (BTC) and ethereum (ETH) on behalf of its clients.
What do you think of BNY Mellon’s announcement that it will now hold Bitcoin and Ethereum on behalf of its customers? Tell us what you think about it in the comments section below.
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