Apparently, the current bear market does not affect the interest of large institutions to enter the crypto industry, one of which is the oldest US bank, BNY Mellon.
Reportedly, BNY Mellon is now preparing to become the first bank to enter the global digital storage space by the end of this year.
In the future, this crypto custodial service will be aimed at institutional clients, allowing big players to store their Bitcoin and Ethereum in bank crypto wallets.
Katey Neate, Chief Risk Officer for asset and digital services at BNY Mellon, said:
“We announced last year that we are defending digital asset users. The idea is that we build a digital asset platform that is based on storage that enables interoperability of traditional and digital assets.”
Initially, the oldest bank in the US will open its services to the US market only, which of course will expand its reach if there is a growing demand for the service.
Head of Commercial Products for BNY Mellon digital asset custodian, Talia Klein, has seen the UK will become a very dynamic and active digital asset market in the future. Is this a signal of their expansion into the land of the three lions? We're still watching.
Furthermore, although Bitcoin and Ethereum will be the first two cryptocurrencies supported at initial launch, other traditional assets and digital tokens are likely to be added to the service in the not too distant future.
Neate added: “I think the clarity of the rules is increasing, and people feel more confident because of the clarity of the rules.. It's still not the Nirvana we were looking for, but at least it's easier to read the tea leaves now and understand what to look for when you develop risk framework.”
The BNY Mellon crypto custodial service will be based on a framework developed by Fireblocks, a blockchain startup platform specializing in digital asset storage.
Of course, this is a great service from a bank like BNY Mellon, to enable easier exposure for investors to crypto assets that are expected to be the backbone of the industry going forward.
