all about cryptop referances
America’s oldest bank, the Bank of New York Mellon Corporation, commonly known as BNY Mellon, has announced that the financial institution can now store cryptocurrencies. A report published by the Wall Street Journal on Tuesday said BNY Mellon was approved by the New York State Department of Financial Services (DFS), and the bank said it was the first of eight financial heavyweights to start storing crypto assets.
Last fall, New York’s financial regulator DFS gave BNY Mellon (NYSE: BK) approval to deposit cryptocurrencies and a report published by the Wall Street Journal (WSJ) says the bank is ready to begin. BNY Mellon will store a cryptoasset owner’s private keys, according to the report, in a similar way to how it manages bonds, stocks and other types of assets on behalf of its clients.
BNY Mellon is America’s oldest bank founded in 1784 by Alexander Hamilton, and it manages more than 40 trillion nominal US dollars in assets. In 2021, the financial giant had $2.4 trillion in assets under management (AUM). The report written by WSJ contributor Justin Baer explains that BNY Mellon says it is the first of eight “systemically important” banks in the United States that have been approved by financial regulators to hold digital assets.
BNY Mellon has been in cryptocurrencies for some time, and in October 2021 it urged the authorities in Ireland to adopt regulatory standards for cryptoassets ahead of the EU’s codified regulations. In April 2022, the bank was selected by Circle Financial to deposit stablecoin usd coins (USDC) reserves. The following month, BNY Mellon joined several banks such as Wells Fargo and Citi in investing in an institutional digital asset technology provider called Talos.
The WSJ report published on Tuesday says BNY Mellon is leveraging Fireblocks software for its custody solution. Furthermore, it also uses software developed by blockchain monitoring firm Chainalysis, allowing it to analyze crypto assets held within the bank’s confines. In addition to explaining that it will use Fireblocks and Chainalysis, the financial institution also noted that it will initially hold bitcoin (BTC) and ethereum (ETH) on behalf of its customers.
What do you think of BNY Mellon announcing that it will now hold bitcoin and ethereum on behalf of its clientele? Let us know what you think about this topic in the comments section below.
Image credit: Shutterstock, Pixabay, Wiki Commons, Editorial Image Credit: JHVEPhoto / Shutterstock.com
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or an endorsement or recommendation of products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is directly or indirectly responsible for damages or losses caused or alleged to be caused by or in connection with the use of or reliance on content, goods or services mentioned in this article.
