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The oldest bank in America is ready to roll out its crypto services

Justin Baer claims that BNY Mellon is first of 8 U.S. banks to get such permission

Shashank Bhardwaj
Published: Oct 12, 2022 03:41:32 PM IST
Updated: Oct 12, 2022 03:51:27 PM IST

The oldest bank in America is ready to roll out its crypto servicesImage: Shutterstock

BNY Mellon (NYSE: BK) is prepared to start custody of crypto assets after receiving authorisation from New York's financial regulator DFS last fall. It is reported that, BNY Mellon would manage a crypto asset owner's private keys similarly to how it manages bonds, equities, and other kinds of assets on behalf of its clients.

BNY Mellon provides knowledgeable investment, wealth management, and investment services, whether doing so for institutions, businesses, or individual investors. Roman Regelman, CEO of securities services and digital of the company, said, “With Digital Asset Custody, we continue our journey of trust and innovation into the evolving digital assets space while embracing leading technology and collaborating with fintechs.”

The oldest bank in the United States, BNY Mellon, was established in 1784 by Alexander Hamilton, and it currently oversees more than 40 trillion dollars in assets. The financial behemoth managed $2.4 trillion in assets in 2021. According to Justin Baer, BNY Mellon is the first of eight US banks that financial regulators have given permission to hold digital assets.

As a worldwide investment firm, BNY Mellon is committed to assisting its clients in managing and servicing their financial assets over the course of the investment lifecycle. Since BNY Mellon has been investing in cryptos for a while, it recommended that Irish authorities implement regulatory standards for digital assets in October 2021, before the European Union defined legislation.

Circle Financial selected the bank in April 2022 to hold the stablecoin USD coin's (USDC) reserves in custody. The next month, BNY Mellon made an investment in institutional digital asset technology vendor Talos, joining other banks like Wells Fargo and Citi.

BNY Mellon uses software from Fireblocks for its custody solution. It also uses technologies created by Chainalysis, a blockchain monitoring company, to examine digital assets kept inside the bank's walls. The banking institution highlighted that it will first take custody of Bitcoin (BTC) and ethereum (ETH) on behalf of its clients and that it will use Fireblocks and Chainalysis.

A recent bank poll shows that 41 percent of institutional investors have crypto assets in their portfolios, and 91 percent are interested in investing in tokenised products.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash

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