America’s oldest bank, Bank of New York Mellon, has unveiled its plans to hold, transact, and issue bitcoin (BTC) and other cryptos as an asset manager on behalf of its customers. The reason for that decision allegedly comes from institutional investors, who are the top brass of BNY Mellon’s clientele, amid the 2021 bull season for the asset class.
The chief executive of the bank’s asset-servicing business says that digital assets are now becoming “part of the mainstream.” The Wall Street Journal notes that BNY Mellon is hardly the first major name in the traditional finance space to embrace digital assets. Others like Fidelity Investments have long been in the game. Yet, it is the first national custody bank that has committed to the introduction of crypto custody for its clientele in the near term i.e. ‘later this year.’
The chief executive of BNY’s asset-servicing and digital businesses, Roman Regelman, was cited by the WSJ saying that “digital assets are becoming part of the mainstream.”
Based on the report, the bank wants to manage cryptos using a platform that is currently in the prototype version. The new platform will handle traditional holdings like stocks and treasuries.
BNY Mellon did not put any limits on what types of cryptos it is getting ready for custody. One dedicated team of bank executives that will be led by Mike Demissie has allegedly been tasked with managing the integration of crypto custody and management into all of the bank’s businesses.
While the bank is pressing forward with its growth and expansion plans, Regelman nevertheless expects that full incorporation of digital assets into traditional banking infrastructure will take another 3-5 years.