The Bank of New York Mellon, the oldest in the United States, will allow some of its American customers this week to store their Bitcoins (BTC) and their Ethers (ETH) at home thanks to a dedicated custody service. BNY Mellon plans to extend this service to the 6 continents and 36 countries where it is already present to offer its traditional finance services.
New York bank BNY Mellon welcomes cryptocurrencies
The Bank of New York Mellonthe oldest bank in the United States, announces the availability of a cryptocurrency custody service for its customers starting this week. In doing so, it becomes the first major American bank to offer both a custody service dedicated to cryptocurrencies and both support for traditional investments.
The 238-year-old US bank received approval from New York’s financial regulator earlier this fall to offer a Bitcoin (BTC) and Ether (ETH) custody service to its customers.
BNY Mellon will use compliance software from Chainalysis to conduct due diligence processes with its Know Your Transaction (KYT) tool. To another extent, Chainalysis will also allow the bank to measure transaction volumes passing through its cryptocurrency custody service.
This new service will be modeled on the modus operandi usual for the bank, i.e. BNY Mellon will itself store the keys needed to access the funds and to transfer them. According to the statement, it will also provide the same accounting services for cryptocurrencies to its clients as it does for portfolios of stocks, bonds, commodities and other assets.
This custody service will initially be exclusively reserved for the bank’s American customers, but should expand internationallyalthough no date has been communicated on this subject.
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The biggest banks are opening up to cryptocurrencies
This announcement is an important marker of the growing adoption of cryptocurrencies by institutions. To fully understand the extent of the service currently implemented by BNY Mellon, it should be noted that the company is present in 36 countries across 6 continents and employs no less than 50,000 people. At the end of 2021, it held $46.7 billion in assets under custody and more than $2.4 trillion in assets under management.
A growing adoption that now seems natural, as soberly confirmed Robin Vince, Chairman and CEO of BNY Mellonstating that the group was ” delighted to help move the financial industry forward “.
In the same vein, the giant BlackRock has also multiplied the announcements since the beginning of the year. Indeed, the largest asset manager in the world has consecutively announced a partnership with Coinbase to develop cryptocurrencies with institutions, the launch of a private trust to offer BTC on the spot market, and finally the arrival of its ETF dedicated to blockchain for its European customers.
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Source: Wall Street Journal
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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