After winning the approval of New York’s financial regulator earlier this fall, the Bank of New York Mellon is all set to hold its customers’ bitcoin and ether starting this week. The nation’s oldest bank has added cryptocurrencies to its custody services.
BNY Mellon will begin to hold select customers’ bitcoin and ether this week.
America’s oldest bank will offer crypto services to a variety of clients.
The move marks a trend of traditional financial institutions entering the crypto market.
BNY Mellon Will Store the Keys
The bank will store the keys required to access and transfer those assets, and provide the same bookkeeping services on those digital currencies that it offers to fund managers for their portfolios of stocks, bonds, commodities, and other assets.
BNY Mellon will use the software it developed with Firebloacks to store digital assets. Additionally, Chainalysis’s software will help the bank analyze and track the path the assets take before they arrive at the bank.
Traditional Banking Enters the Crypto World
BNY Mellon’s latest move follows a survey conducted this year in which it found that 41% of institutional investors polled in August and September were holding cryptocurrencies. Additionally, 15% said they likely would hold cryptocurrencies in the next two to five years.
“Touching more than 20% of the world’s investable assets, BNY Mellon has the scale to reimagine financial markets through blockchain technology and digital assets,” said Robin Vince, Chief Executive Officer and President at BNY Mellon. “We are excited to help drive the financial industry forward as we begin the next chapter in our innovation journey.”
The Bottom Line
The move of traditional institutions to offer their clients services related to crypto assets will help crypto holders access tested security and service avenues they previously couldn’t get. Crypto markets continue to struggle following their crash earlier this year, but moves like these might help them in the long run.