{"id":221619,"date":"2022-02-25T16:30:42","date_gmt":"2022-02-25T16:30:42","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=221619"},"modified":"2022-02-25T22:10:38","modified_gmt":"2022-02-25T22:10:38","slug":"americas-oldest-bank-to-launch-institutional-crypto-custody-service","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/americas-oldest-bank-to-launch-institutional-crypto-custody-service\/","title":{"rendered":"America’s oldest bank to launch institutional crypto custody service"},"content":{"rendered":"

The Bank of New York Mellon Corporation, better known as BNY Mellon, is reportedly gearing up to become \u201cthe first [bank] to enter the global digital custody space\u201d later this year.<\/span><\/p>\n

According to a <\/span>report<\/span><\/a> published by <\/span>City A.M.<\/span><\/i> on February 24, BNY Mellon\u2019s upcoming custody platform will be aimed at institutional clients, enabling big players to hold their Bitcoin and Ethereum in the bank\u2019s crypto wallets.<\/span><\/p>\n

Meeting institutional demand<\/h2>\n

Katey Neate, the chief risk officer for asset servicing and digital at BNY Mellon, told the outlet:<\/span><\/p>\n

\u201cWe announced last year that we were standing up for digital asset users. The idea is that we build a digital asset platform the cornerstone of which is custody that will enable the interoperability of traditional assets and digital.\u201d<\/span><\/p><\/blockquote>\n

The 238-year-old bank reportedly plans to launch its new custody platform only in the U.S. initially, but may expand to additional territories in case there\u2019s demand for it.<\/span><\/p>\n

\u201cI think what we\u2019re seeing in the UK is that there\u2019s a really vibrant and active digital assets market here,\u201d<\/span><\/p><\/blockquote>\n


\nExplained Talia Klein, the head of digital asset custody commercial products at BNY Mellon.<\/span><\/p>\n

Further, although Bitcoin and Ethereum will be the first two cryptocurrencies supported by the new platform at launch, other tokenized traditional and digital assets will likely be added to in the future.<\/span><\/p>\n

\u201cI think regulatory clarity is improving, and people are feeling more confident because of that regulatory clarity,\u201d Neate added. \u201cIt\u2019s still not the Nirvana that we\u2019re looking for, but it\u2019s at least easier to read the tea leaves now and understand what to look for when you\u2019re developing a risk framework.\u201d<\/span><\/p><\/blockquote>\n

Investments bearing fruit<\/h2>\n

Notably, BNY Mellon\u2019s crypto custody service will be based on a framework developed by Fireblocks, a blockchain startup platform that specializes in digital asset custody. As <\/span>CryptoSlate<\/span><\/i> reported, the bank was among several other investors that helped Fireblocks <\/span>raise $133 million<\/span><\/a> in its Series C funding round last March.<\/span><\/p>\n

Coatue Management, Ribbit Capital, Stripes, and Silicon Valley Bank also were among the investors.<\/span><\/p>\n

Last April, BNY Mellon also reportedly <\/span>cited \u201cno exposure to Bitcoin\u201d<\/span><\/a> as one of the main reasons why its technology-focused fund underperformed.<\/span><\/p>\n

\n

We\u2019re thrilled to be the first Global Systemically Important Bank with plans to utilize @chainalysis<\/a>\u2019s risk management software as a component of our strategy to develop cryptocurrency services for our clients. https:\/\/t.co\/BZC88wc7ic<\/a> pic.twitter.com\/BhdJ9WJZ9p<\/a><\/p>\n

— BNY Mellon (@BNYMellon) February 23, 2022<\/a><\/p><\/blockquote>\n