BNY Mellon Launches Digital Asset Custody Platform
The Bank of New York Mellon Corp. or BNY Mellon, claimed to be the world’s largest custodian banks, announced that its Digital Asset Custody platform is live in the U.S. for institutional clients, with select clients now being able to hold and transfer cryptocurrencies such as bitcoin and ether.
This move is part of BNY Mellon’s commitment to support client demand for a trusted provider of both traditional and digital asset servicing. America’s oldest bank now has the industry’s first multi-asset platform that bridges digital and traditional asset custody.
“Touching more than 20% of the world’s investable assets, BNY Mellon has the scale to reimagine financial markets through blockchain technology and digital assets,” said Robin Vince, President and CEO.
A recent survey sponsored by BNY Mellon showed significant institutional demand for a resilient, scalable financial infrastructure built to accommodate both traditional and digital assets. Almost 91 percent of institutional investors were interested in investing in tokenized products, with 41 percent of them holding cryptocurrency in their portfolio.
As part of its plan to launch Digital Asset Custody, BNY Mellon made a strategic investment in New York City-based crypto custody provider Fireblocks in March 2021. Fireblocks’ underlying technology is used for developing the new platform.
In February 2021, BNY Mellon formed a new enterprise Digital Assets unit to accelerate the development of solutions and capabilities to help clients address growing and evolving needs related to the growth of digital assets, including cryptocurrencies such as Bitcoin.
Exactly a year later, the bank teamed up with New York-based blockchain analytics firm Chainalysis to use their product suite for improving regulatory compliance and security standards as part of its strategy to develop the industry’s first multi-asset digital custody and administration platform for traditional and digital assets.
The partnership with Chainalysis will enable BNY Mellon to ensure that digital assets are securely and compliantly transferred by adhering to security and regulatory anti-money laundering (AML) best practices.
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