Bank of New York Mellon plans to launch a cryptocurrency custody platform this year in response to customer demand

This article comes fromFinance Feeds, Original Author: ABDELAZIZ FATHI

Odaily Translator | Nian Yin Si Tang

Odaily Translator | Nian Yin Si Tang

According to City AMto reportto report

, the oldest bank in the United States has launched a new division dedicated to providing its clients with a "comprehensive service" for digital assets that will cover major cryptocurrencies and may expand to stablecoins. Upon launch, the bank's customers will be able to store bitcoin and ethereum in their encrypted wallets powered by Fireblocks technology.

Katey Neate, chief risk officer of Bank of New York Mellon, pointed out that customer demand is growing, the blockchain industry is gradually maturing, and regulatory transparency is also improving. "Our idea is to build a digital asset platform, the cornerstone of which is custody, which will Make traditional and digital assets interoperable."

“I think regulatory clarity is improving and people are feeling more confident as a result. It’s still not the Nirvana we’re looking for, but at least it’s easier now to see the situation and understand what to look for when developing a risk framework. "

Talia Klein, head of commercial products for digital asset custody at BNY Mellon, said the crypto service could come to the U.K. after an initial launch in the U.S.

"I think what we're seeing in the UK is a really vibrant market for digital assets," Klein said.

Moreover, the custodian bank, which manages $2 trillion in assets, said even conservative clients were seeking exposure to digital assets. The new offering will also be aimed at homegrown cryptocurrency firms such as Coinbase and other U.S. exchanges that are seeking access to BNY Mellon's core investment services.

BNY Mellon is currently developing a prototype that will eventually allow cryptocurrencies to pass through the same financial network it currently uses to invest in traditional assets such as bonds and stocks. The investment bank describes the system as "the first multi-asset digital custody and management platform for traditional and digital assets, bringing bitcoin and cryptocurrencies under one roof with traditional assets."

Earlier in 2019, BNY Mellon entered the cryptocurrency space by partnering with Bakkt, which created the first federally regulated cryptocurrency marketplace, offering geographically distributed storage of private keys secured by BNY Mellon.

Essentially, BNY Mellon's traditional role as asset custodian enables Bakkt to meet federal regulations requiring brokers, exchanges and other institutions to deposit investors' assets with institutions such as BNY Mellon. .

As a result, BNY Mellon and Bakkt have established crypto custody services, and the Wall Street bank's history of protecting institutional client assets is being used to store Bakkt's digital assets.

Perhaps in order to dispel users' concerns about the risks associated with encrypted assets, just a few days ago, BNY Mellon (BNY Mellon)AnnounceAnnounce