BNY Mellon to offer crypto services in digital asset push

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Oct 11 (Reuters) — Bank of New York Mel­lon Corp (BK.N) is adding cryp­tocur­ren­cies to assets that it holds as a cus­tody man­ag­er, as it looks to attract a diverse set of investors and traders by tap­ping into the pop­u­lar­i­ty of bit­coins and ethers.

Trad­ing in cryp­tocur­ren­cies has sky­rock­et­ed world­wide, draw­ing many tra­di­tion­al insti­tu­tions to an asset ear­li­er shunned by Wall Street due to its wild swings and sharp reg­u­la­to­ry scrutiny.

Nas­daq Inc (NDAQ.O) and Black­Rock Inc (BLK.N) have already rolled out cus­tody plat­forms for their clients, as they look to gain a foothold in a mar­ket dom­i­nat­ed by play­ers such as Coin­base Inc (COIN.O) and Binance.

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BNY formed a unit in 2021 to devel­op solu­tions for dig­i­tal asset tech­nol­o­gy, tap­ping com­pa­nies Fire­blocks and Chainal­y­sis, it said in a state­ment on Tuesday.

Cryp­to is real­ly just the “tip of the spear”, but tok­enized assets hold a lot of promise despite being the least devel­oped, said Michael Demissie, head of dig­i­tal assets and advanced solu­tions at BNY Mel­lon, adding that a recent bank study showed over 90% of insti­tu­tion­al investors were look­ing to invest in the segment.

The 238-year-old bank won the approval of New York’s finan­cial reg­u­la­tor ear­li­er this fall and is the first of the eight sys­tem­i­cal­ly impor­tant U.S. banks to store dig­i­tal cur­ren­cies and allow cus­tomers to use one cus­tody plat­form for both its tra­di­tion­al and cryp­to hold­ings, the Wall Street Jour­nal report­ed ear­li­er on Tues­day. https://on.wsj.com/3T8ysYR

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Report­ing by Mehnaz Yas­min and Manya Sai­ni in Ben­galu­ru and Saeed Azhar in New York; Edit­ing by Anil D’Sil­va and Vinay Dwivedi

Our Stan­dards: The Thom­son Reuters Trust Principles.

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