BNY Mellon, one of the leading investment banks, is developing a digital asset custody platform that will allow institutional clients to gain exposure to cryptocurrencies.
According to a note from City AM, customers will be able to store the world’s most popular cryptocurrencies, Bitcoin (BTC) and Ether (ETH), in BNY Mellon’s crypto wallets, which will feature Fireblocks technology. However, once regulatory approval has been granted, the service will gradually scale up and integrate a variety of tokenized digital and traditional assets.
The new service, according to the investment bank, is expected to be available by the end of this year. BNY Mellon also suggested that it will be “first in” in the global digital custody market.
According to the report, Mellon intends to start in the United States before expanding around the world based on market demand. Following the US debut, BNY Mellon’s head of digital asset custody Talia Klein envisions that the service could be rolled out to the UK:
“I think what we’re seeing in the UK is there’s a really vibrant and active digital asset market.”
In February of last year, the bank initially disclosed its intentions to store, transfer and issue Bitcoin and other cryptocurrencies as an asset manager on behalf of its clients. BNY Mellon announced a collaboration with Grayscale Investments in July 2021 to provide a number of services for its flagship Bitcoin investment product.
Remember that crypto is capable of exponential price moves is a very short amount of time. Add institutional adoption and network affects BTC and there is a real possibility that a strong move to the upside can happen at any time. #btc #eth #Sun #crypto
The Meditative Mind (@aussieg7) February 22, 2022
Remember that cryptocurrencies are capable of exponential price movements in a very short time. If we add institutional adoption and network effects to BTC, there is a real possibility of a strong move to the upside at any time.
As Cointelegraph reported, BNY Mellon recently partnered with Chainalysis, a blockchain data and analytics firm, to use the company’s compliance software within its risk management system.
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