The Bank of New York (BNY) Mellon, currently ranked as the world’s largest custodian bank and securities services company with $41.7 trillion in assets under custody (AUC) and over $2.2 trillion in assets under management (AUM), has partnered with Chainalysis, a blockchain software and analytics firm.
Chainalysis will be providing frameworks from its compliance software to BNY Mellon, which will utilize this for its own risk management system. Chainalysis will also provide BNY Mellon with analytics and software to track digital asset usage among its clientele, which includes institutional investors who have been or are planning to gain exposure to crypto-assets.
“At BNY Mellon, we enter the digital asset market with the title of the most trusted asset service provider. Working with Chainalysis and other leading fintech companies, we are developing our capabilities in the growing cryptocurrency industry and reflecting this in our products.” shares Caroline Butler, Head of Global Custody, Tax, and Network Management at BNY Mellon.
Resources and technical knowledge from the partnership will also be integrated into BNY Mellon’s initiatives into creating a platform that will provide digital asset custody, a project that is aimed for launch within the year.
Backed by its reputation for secure, compliant, and institutional-grade custody services, the investment bank has stated that it will launch this type of service in the U.S., with expansion following in the U.K. and globally, based on client demand.
“I think what we’re seeing in the UK is that there’s a really vibrant and active digital assets market here,” shares Talia Klein, Director of Digital Asset Custody at BNY Mellon.
According to an exclusive report from City A.M., the launch the new crypto custody platform will effectively make BNY Mellon “the first to enter the global digital custody space.”
Once launched, BNY Mellon’s customers will be able to securely store top cryptocurrencies such as Bitcoin ($BTC) and Ether ($ETH). The platform’s native wallet will be powered by an API served by Fireblocks, a digital asset and security firm.
“We announced last year that we were standing up for digital asset users. The idea is that we build a digital asset platform the cornerstone of which is custody that will enable the interoperability of traditional assets and digital.” shares Katey Neate, Chief Risk Officer for asset servicing and digital at BNY Mellon.
Regulatory approval is yet to be clarified, though, and the provision and integration for tokenized traditional and digital assets will not be served on BNY Mellon’s forthcoming platform without prior compliance frameworks set.
BNY Mellon first disclosed its intent to engage with the crypto industry last year, with the aim of issuing Bitcoin and other cryptocurrencies for storage and transfer for its clients in its capacity as an asset manager. The investment bank also has a concurrent partnership with Grayscale Investments, providing a suite of services for the latter’s flagship Bitcoin investment product.Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
