BNY Mellon Launches New Digital Asset Custody Platform

Rhea-AI Summary

BNY Mellon has launched its Digital Asset Custody platform in the U.S., allowing select clients to hold and transfer bitcoin and ether. This initiative aims to meet rising demand for both traditional and digital asset services. Founded over 238 years ago, BNY Mellon plans to establish a multi-asset platform that integrates digital and traditional custody solutions. A recent survey indicates 91% of institutional investors are interested in tokenized products, with 41% already holding cryptocurrency. The bank collaborates with fintech specialists like Fireblocks and Chainalysis to enhance security and compliance.

Positive

• Launch of Digital Asset Custody platform allows clients to hold bitcoin and ether.
• 91% of institutional investors show interest in tokenized products, indicating strong market demand.
• BNY Mellon is collaborating with fintechs to enhance security and compliance in digital asset transactions.

Negative

• None.

World's largest custodian bank leads development of financial infrastructure to support digital assets

NEW YORK, Oct. 11, 2022 /PRNewswire/ -- BNY Mellon today announced that its Digital Asset Custody platform is live in the U.S. With select clients now able to hold and transfer bitcoin and ether, this milestone reinforces BNY Mellon's commitment to support client demand for a trusted provider of both traditional and digital asset servicing.

As America's oldest bank, BNY Mellon has a 238-year legacy of trust, resilience, and innovation. In this spirit, BNY Mellon formed an enterprise Digital Assets Unit in 2021 to develop solutions for digital asset technology, with plans to launch the industry's first multi-asset platform that bridges digital and traditional asset custody.

"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," said Robin Vince, Chief Executive Officer and President at BNY Mellon. "We are excited to help drive the financial industry forward as we begin the next chapter in our innovation journey."

A recent survey sponsored by BNY Mellon highlights already significant institutional demand for a resilient, scalable financial infrastructure built to accommodate both traditional and digital assets. According to the survey, almost all institutional investors (91%) are interested in investing in tokenized products. Additionally, 41% of institutional investors hold cryptocurrency in their portfolio today, with an additional 15% planning to hold digital assets in their portfolios within the next two to five years.

"With Digital Asset Custody, we continue our journey of trust and innovation into the evolving digital assets space, while embracing leading technology and collaborating with fintechs," said Roman Regelman, CEO of Securities Services & Digital at BNY Mellon. 

BNY Mellon has been working closely with market-leading fintechs. The firm tapped digital asset technology specialists Fireblocks and Chainalysis to integrate their technology in order to meet the present and future security and compliance needs of clients across the digital asset space.

"As the world's largest custodian, BNY Mellon is the natural provider to create a safe and secure Digital Asset Custody Platform for institutional clients," said Caroline Butler, CEO of Custody Services at BNY Mellon. "We will continue to innovate, embrace new technology and work closely with clients to address their evolving needs."

About BNY Mellon 
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment and wealth management and investment services in 35 countries. As of June 30, 2022, BNY Mellon had $43.0 trillion in assets under custody and/or administration, and $1.9 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.

Media Contact:
Steve LaMarca
+1 908 581 8292
steve.lamarca@bnymellon.com

View original content:https://www.prnewswire.com/news-releases/bny-mellon-launches-new-digital-asset-custody-platform-301645285.html

SOURCE BNY Mellon

FAQ

What is the significance of BNY Mellon's Digital Asset Custody platform launch?

BNY Mellon's Digital Asset Custody platform allows clients to hold and transfer bitcoin and ether, responding to increasing demand for digital asset services.

What percentage of institutional investors are interested in tokenized products according to BNY Mellon's survey?

According to the survey, 91% of institutional investors are interested in investing in tokenized products.

How does BNY Mellon plan to integrate digital and traditional asset custody?

BNY Mellon plans to launch a multi-asset platform that bridges digital and traditional asset custody solutions.

When was the Digital Asset Custody platform launched by BNY Mellon?

The Digital Asset Custody platform was launched on October 11, 2022.

Who is BNY Mellon's CEO?

BNY Mellon's CEO is Robin Vince.