BNY Mellon has established a digital asset division. The oldest bank in the United States plans to “hold, transfer and issue” Bitcoin and other cryptocurrencies on behalf of its customers. The bank’s goal is to ultimately treat cryptocurrencies like other assets.
BNY Mellon enters cryptocurrency
BNY Mellon, the oldest bank in the United States, announced on Thursday that it “formed a new corporate digital asset division that will accelerate the development of solutions and features to help customers meet the growing demand related to the growth of digital assets, including cryptocurrencies. “
BNY Mellon is a global investment company with operations in 35 countries/regions. According to data on its website, as of December 31, 2020, the bank’s assets under custody and/or management were US$41.1 trillion and assets under management were US$2.2 trillion.
“The Bank of New York Mellon is honored to be the first global bank to announce plans to provide digital asset integration services,” said Roman Regman, CEO of the bank’s asset services and head of digital business. “Awaiting further evaluation and approval, we hope to begin providing these innovation and industry shaping functions later this year.”
The team will be led by Mike Demissie, Senior Solutions Director at BNY Mellon. He commented:
The Digital Assets Department plans to provide a secure infrastructure for the transmission, custody and issuance of digital assets.
Caroline Butler, head of custody at BNY Mellon, said: “Enable the use of digital assets is essential to change the future of custody.” “Our digital asset functions should help develop the way the financial industry operates, including custody, collateral management, and issuance. , Investment management and other fields.”
Although the bank’s official announcement did not mention which cryptocurrency it will support, the Wall Street Journal reported that the bank “will hold, transfer and issue BTC and other cryptocurrencies on behalf of its asset management customers.” The bank further plans to eventually Treat digital currencies like other assets.
Regelman explained that “digital assets are becoming mainstream,” noting that “until now, those fund managers have had to use a separate custodian to hold their cryptocurrency.”
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