April 25, 2024

Bank of New York to Begin Crypto Services

The Bank of New York, Mellon Corp, is beginning to offer management services for cryptocurrencies. The bank will now include crypto in its list of assets in its custody. 

Wider Customer Service

The bank looks to attract a wide range of investors and traders. It has, therefore, taped into the wide acceptance enjoyed by Bitcoin and Ethereum. 

Cryptocurrency trading has improved throughout the world as it attracts traditional institutional investors. It is impressive given that Wall Street once shunned the sector over volatility. The high level of criticism against crypto also formed reasons for the distance.

BlackRock and Nasdaq already took the lead to give custodian services to their clients. They both hope to get a solid footing in the market. Especially as it is taken over by the first players such as Binance and Coinbase.

The Bank of New York created the Digital Assets Enterprise Unit in 2021. The goal was to create a solution for virtual asset technology. It was going to tap into digital technology firms like Chainalysis and Fireblocks, a statement released on Tuesday said.

The bank got approval for the services from regulators in New York earlier in the fall. It is also the first of the systemically important banks in the US to store virtual currencies. It also lets customers use a custody platform for both crypto and traditional holdings.

It’s Been Long Coming

The bank announced that the crypto platform will be live with some investment firms this week. The services will then be made available to other clients at a later date.

News about this development started to filter in early in the year. News reported that the bank had to wait a while for regulators to conclude. They also had to give necessary permissions to its wallets built by Fireblocks tech.

The report goes on to say the bank plans to offer crypto services globally. Nevertheless, it would be starting in the US.

The Bank of New York’s investment into crypto bares a sign of wider institutional adoption. It’s only a matter of time before seeing it everywhere else.

The Bank of New York has entered a partnership with crypto companies to drive its new venture. They include Chainalysis and Grayscale. More activities are expected from them in days to come.  

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