BNY Mellon Preparing to Launch Institutional Crypto Custody Platform

BNY Mellon, a major US global bank headquartered in New York, has announced plans to launch a digital asset custody platform today to enable institutional clients to get exposure to cryptocurrencies .

The new custody platform will enable customers to hold the major crypto coins like Bitcoin and Ether in BNY Mellon crypto wallets which will be powered by Fireblocks technology. However, the service will gradually expand and include a wide variety of tokenized traditional and digital assets subject to regulatory approval.

The investment bank said it expects the launch of the new product later this year. The product will make the investment bank “the first to enter the global digital custody space,” Mellon said.

Katey Neate, the Chief Risk Officer for asset servicing and digital at BNY Mellon, said: “We 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.”

Mellon mentioned that it plans to launch the new crypto custody product first in the US before expanding it to global markets based on demand. Talia Klein, the Head of Digital Asset Custody Commercial Products for BNY Mellon, hinted that the service could move to the UK after the US launch. “I think what we’re seeing in the UK is that there’s a really vibrant and active digital assets market here,” she revealed.

Making Investment Products More Accessible and Efficient

Founded in 1784, BNY Mellon is continuing to help its customers manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for individual investors, institutions or corporations, the global bank provides informed investment services and investment management in 35 countries.

BNY Mellon has been making increasing actions toward offering crypto services after it set up a dedicated digital asset team a year ago. In February last year, the bank started developing a prototype that would eventually enable crypto assets to pass through the same financial network it currently uses for investments in traditional assets such as stock and bonds. The bank described the system as “the first multi-asset digital custody and administration platform for both traditional and digital assets, bringing Bitcoin and cryptocurrencies under the same roof as traditional holdings.”

The new offering targets native cryptocurrency companies, such as Coinbase and other US exchanges, which are looking for BNY Mellon’s core investment services.

A few days ago, BNY Mellon partnered with Chainalysis, a blockchain data and analysis firm, to use Chainalysis compliance software as part of the bank’s risk management program. Amid the rising adoption of digital currencies in the US, Mellon plans to eliminate compliance-related risks through the said partnership.

The investment bank said it expects the launch of the new product later this year. The product will make the investment bank “the first to enter the global digital custody space,” Mellon said.

Making Investment Products More Accessible and Efficient

The new offering targets native cryptocurrency companies, such as Coinbase and other US exchanges, which are looking for BNY Mellon’s core investment services.