BNY Mellon launches its Digital Asset Custody platform

In the latest cryptocurrency news, BNY Mellon, an investment and wealth management company that’s also the world’s leading custody provider, has unveiled its digital assets platform that will see customers benefit from crypto services offered alongside traditional products.

According to a press release BNY Mellon published on Tuesday, the Digital Asset Custody platform will be available to the US market.

Select customers will, going forward, use the platform to hold and transfer Bitcoin and Ethereum, the firm announced.

Bridging digital and traditional asset space

The bank first announced the formation of the Digital Asset Custody Unit in February 2021, stating at the time that the goal was to launch the first multi-asset platform in the industry to bridge the digital and traditional asset custody divide.

BNY Mellon, which had $43 trillion in assets under custody and $1.9 trillion in assets under management (AUM) as of 30 June 2022, plans to use the crypto custody division as its step to further innovation.

Robin Vince, CEO and President at BNY Mellon said:

“Touching more than 20% of the world’s investable assets, BNY Mellon has the scale to reimagine financial markets through blockchain technology and digital assets.”

As per the press release, BNY Mellon worked with crypto technology firm Fireblocks and blockchain security provider Chainalysis.

The digital asset servicer said it tapped into these platforms to integrate technology that offers both the security and compliance needed to navigate the fast-growing crypto investment industry.

Increased demand from institutional clients

BNY Mellon’s launch of its digital asset custody unit adds to the growing entry of major traditional financial and investment industry players into the crypto service market.

Recent development involving Fidelity Investments, BlackRock and other Wall Street giants, comes amid a broader demand for crypto from institutional clients. The 238-year old BNY Mellon is therefore making a major move, with the milestone bringing America’s oldest bank to the digital asset custody space.

As Invezz reported recently, Nasdaq is also entering the crypto custody space, with BNY Mellon and State Street key competitors alongside crypto-native providers like Coinbase.