Today BNY Mellon announced it created a Digital Assets unit and is working on a client-facing prototype to offer an integrated solution for traditional and digital asset custody, including cryptocurrencies.
“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 Roman Regelman, CEO of Asset Servicing and Head of Digital at BNY Mellon. “Pending further evaluations and approvals, we expect to begin offering these innovative and industry-shaping capabilities later this year.”
The bank plans to combine in-house expertise with technologies from fintechs and others. Digital asset custody services need to support transfer, but BNY Mellon also plans to get involved with issuance.
“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,” said Caroline Butler, head of Custody at BNY Mellon.
In the last two months, several banks around the world have announced digital asset solutions. They included a joint venture between Standard Chartered and Northern Trust for custody, BBVA Switzerland is launching digital asset trading and custody, and Singapore’s DBS Bank unveiled institutional trading services.
BNY Mellon has plenty of existing activities in the blockchain sector, including for collateral management, foreign exchange, asset-backed securities, trade finance, and institutional payments.
At the end of 2020 the bank had $41.1 trillion in assets under custody and/or administration
