One of the oldest banks in the world is dipping its toes into the nascent world of cryptocurrencies as traditional companies embrace the emerging market.
The Bank of New York Mellon Corporation, better known as BNY Mellon, an investment banking service holding company, is the latest publicly-traded firm to enter the cryptocurrency industry.
Established in 1784, BNY Mellon has $2 trillion in assets under management (AUM) and $38.6 trillion in assets under custody.
The old meets the new
The company announced today that it has formed a new enterprise Digital Assets division to cater to clients with interest in digital assets such as cryptocurrencies.
The new unit will be led by Mike Demissie, the head of Advanced Solutions at the bank, which is currently “developing a client-facing prototype that is designed to be the industry’s first multi-asset digital custody and administration platform for traditional and digital assets.”
Roman Regelman, CEO of Asset Servicing and Head of Digital at BNY Mellon expressed the company’s pride in being the first bank in the world to provide an integrated service for digital assets.
“Growing client demand for digital assets, maturity of advanced solutions, and improving regulatory clarity present a tremendous opportunity for us to extend our current service offerings to this emerging field,” said Regelman.
Services coming this year
The executive added that pending approval, the bank will begin offering these services to clients later this year.
After The Wall Street Journal broke the news, the company’s shares rose by 2% in premarket trading.
Caroline Butler, Head of Custody at the bank said transforming the future of custody depends on how the use of digital assets is enabled.
“Building the bridge between the traditional and digital spaces will create a front-to-back ecosystem for innovation,” said Butler.
Our digital asset capabilities should help evolve the way the financial industry operates, including custody, collateral management, issuance, investment management and other segments where BNY Mellon is a key service provider.”
A big endorsement for crypto
The move by BNY Mellon, the oldest bank in the U.S., is a huge step that could ease institutional concerns about investing in the crypto sector.
Businesses and individual investors are becoming more comfortable with the emerging market as high-profile business leaders such as Elon Musk and Michael Saylor have made big bets on bitcoin.
Bitcoin is up 65% up in year-to-date performance.