BNY Mellon is among the banks in the consortium that will launch Pure Digital, the trading platform for bitcoin and cryptocurrencies.
This was announced by the Financial Times.
BNY Mellon’s move comes as no surprise. The New York-based banking giant announced last February that it would be offering cryptocurrency services to its customers. It is also working with Grayscale to launch a bitcoin ETF (assuming the SEC approves it).
With this new announcement, it is clear that BNY wants to have even more space in the crypto sector.
What is Pure Digital and why will BNY Mellon support it?
Pure Digital is the crypto trading platform that will be launched by Pure Markets (in which 37.5% of the shares are held by Arcane Crypto AB), in partnership with State Street Bank & Trust Company (another major US bank).
The platform aims to be the first of its kind, allowing banks to offer investment services on bitcoin and cryptocurrencies. Pure Digital also aims to be fast and to integrate custody services as well.
Obviously, this platform is not aimed at retail traders but at institutional investors. In fact, Pure Digital’s plan is to meet the growing demand for bitcoin and cryptocurrencies by offering these clients an environment that is as similar as possible to that of classic investments.
This would also be a turning point for banks, which until now have always feared bitcoin because of its volatility and associated risks. But with the rise in the price of BTC, which touched $65,000 in April, interest in it has increased.
Banks are beginning to understand that this demand cannot be left to the exchanges alone. BNY Mellon is an example of how the trend is changing and even the banks are to some extent “leaning in”. They have realized that they cannot continue to ignore bitcoin.
Jason Vitale, global head of foreign exchange at BNY Mellon said:
“Digital assets are only going to become more embedded in global markets in the years ahead, and this collaboration accords with BNY Mellon’s wider strategy to develop a digital asset capability for clients across the entire trade life cycle”.
In short, bitcoin was born to fight the banks. It ended up conquering them.
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