Blockchain data platform, Chainalysis recently announced that the company has joined hands with the Bank of New York Mellon Corporation (BNY Mellon), to provide crypto compliance tools. BNY Mellon aims to use the compliance software of Chainalysis as part of the bank’s risk management program.
In February last year, BNY Mellon announced the establishment of a multi-asset custody and administration platform for crypto-assets and traditional financial assets. Amid the growing adoption of digital currencies in the US, the American financial services provider is planning to eliminate compliance-related risks through the announced partnership.
“BNY Mellon enters the digital asset market as the most trusted asset servicer in the space,” said Caroline Butler, Global Head of Custody, Tax and Network Management for BNY Mellon. “Working with Chainalysis and other leading fintech providers is foundational to our role as a trusted innovator and the extension of our capabilities into products that serve the growing cryptocurrency market.”
According to a report published by Chainalysis in January 2022, the overall illicit activities related to the cryptocurrency market have increased since the start of 2021 in terms of transactions. However, due to rapid growth, the share of illegal crypto transactions has decreased.
Crypto Compliance
With growing adoption, the need for updated crypto compliance resources has jumped significantly. Chainalysis saw a sharp surge in demand for its products during 2021. In June last year, the blockchain data firm raised $100 million in a Series E funding round and crossed the valuation of $4.2 billion.
“Chainalysis has always believed that financial institutions are critical to the overall growth and success of the cryptocurrency industry,” said Jonathan Levin, the Co-Founder, and Chief Strategy Officer at Chainalysis. “BNY Mellon is the best of both worlds: it has the reputation of being one of the world’s most trustworthy banks while fostering an innovative and forward-thinking culture. We are proud to collaborate with them as they launch their digital assets business.”
