BNY Mellon, the oldest US bank plans to start offering crypto services
- The bank intends to roll out crypto services, such as custody before the end of this year.
- The BNY Mellon decided to test crypto due to increasing demand.
- Per Mike Demissie, BNY Mellon’s head of digital assets unit, digital assets are the future.
BYN Mellon, a New York-based banking giant has announced that it would soon start offering various services for Bitcoin (BTC), among other cryptocurrencies. A report unveiled this news on February 11, noting that the bank intends to hold, transfer, and issue crypto on behalf of its asset-management clients. Reportedly the bank hopes to avail these services before the end of the year.
According to the report, the bank is working on developing a platform, which is currently a prototype, that will let cryptocurrencies pass through the same financial network it uses for traditional holdings, such as bonds and equities. Although the work is yet to be completed, the bank has allegedly started welcoming its clients to let it handle their crypto.
Demand for cryptocurrencies continues surging
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Per Regelman, three factors compelled the bank to dip its toes in the crypto sector. These are growing client demand for digital assets, the maturity of advanced solutions, and improving regulatory clarity. Seeing as things lined up, the bank decided to expand its current service offerings to include the burgeoning crypto sector.
Mike Demissie, a BNY Mellon executive that heads the bank’s digital assets unit said there has been an increase in institutional interest in BTC and the crypto market as a whole. He added that there has been an overall shift in sentiment, regarding digital currencies, and that digital assets are the future.
Following this news, BNY Mellon’s shares rose 2% in premarket trading. On the other hand, BTC is up 8.23% over the past 24 hours to trade at £34,429.