BNY Mellon, World’s Largest Custodian Bank Launches Crypto Custody Services

Vignesh Karunanidhi
BNY Mellon, World’s Largest Custodian Bank Launches Crypto Custody Services
Source: Coindesk

BNY Mellon is now open to providing crypto custody services to its users. As the world explores cryptocurrencies and the market expands, companies and organizations want to get their hands on digital assets.

The worldwide demand for crypto services and investment alternatives increasing. Banks cannot simply ignore the offer but rather provide a secure and regulated means for consumers to participate.

Banks across the globe are trying to explore cryptocurrencies. Many of them are already diving into it by providing crypto custody services. In the latest announcement, the Bank of New York Mellon is opening up the doors for crypto custody services.

BNY Mellon to begin receiving crypto from Tuesday

The Bank of New York Mellon stated that it will begin receiving cryptocurrencies from clients on Tuesday. It will make BNY Mellon the first large US bank to provide traditional banking and digital assets safeguarding alongside.

The bank received approval from the financial regulator of New York earlier this year. Now the bank can begin to accept BTC and ETH this week. BNY Mellon will store the digital asset key and provide similar bookkeeping services as those of stocks and commodities.

The action represents a significant turning point in traditional banks’ embrace of digital assets as a genuine market and a source of fresh revenue.

BNY Mellon

“We are excited to help drive the financial industry forward,” Robin Vince, BNY Mellon’s president and chief executive, stated.

BNY Mellon will also be the first of eight systematically important banks in the United States to provide a platform for both crypto and traditional finance. The bank had initial plans to incorporate crypto services and unveiled them in February 2021. It is providing custody services by utilizing software from Fireblocks for storing crypto. The bank will also utilize services from Chainalysis to trace the path of crypto assets that reach the bank.