Bank of New York Mellon Corporation, or BNY Mellon, the oldest bank in the United States, has announced that financial institutions can now store cryptocurrencies. According to a report published by The Wall Street Journal on Tuesday, BNY Mellon was approved by the New York State Department of Financial Services (DFS), which said the bank is the first of eight financial giants to launch crypto asset custody services.
BNY Mellon will launch Bitcoin and Ethereum custody services on behalf of its customers
Last fall, New York financial regulator DFS gave BNY Mellon (NYSE:BK) approval to store cryptocurrencies, and areport published by the Wall Street Journal (WSJ)says the bank is ready to start BNY Mellon will store the private keys of crypto asset owners in a manner similar to how it manages bonds, stocks, and other types of assets on behalf of its customers, according to the report.
BNY Mellon, founded by Alexander Hamilton in 1784, is the oldest bank in the U.S. and nominally manages more than $40 trillion in assets. in 2021, the financial giant had $2.4 trillion in assets under management (AUM). written by WSJ contributor Justin Bear. The report explains that BNY Mellon is the first of eight “systemically important” U.S. banks to be granted custody of digital assets by financial regulators.
BNY Mellon has been in cryptocurrencies for quite some time and in October 2021 urged authorities to adopt regulatory standards for crypto assets in Ireland before the European Union codified the regulations.In April 2022, the bank was granted by Circle Financial to store stablecoin to hold reserves of usd coin (USDC), a stablecoin. The following month, BNY Mellon joined several banks like Wells Fargo and Citi when it invested in an institutional digital asset technology provider called Talos.
According to a WSJ report published Tuesday, BNY Mellon is leveraging Fireblocks software for its custody solution. It also uses software developed by blockchain monitoring firm Chainalysis, which allows it to analyze crypto assets held within the bank’s scope.Explaining that it will use Fireblocks and Chainalysis, the financial institution said that it will initially also stated that it will store Bitcoin (BTC) and Ethereum (ETH) on behalf of its customers.
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