In a manner similar to how fund managers are served in traditional assets, the bank will hold private keys and perform bookkeeping services.
On October 11, America’s oldest bank, BNY Mellon, introduced a digital custody platform to protect the holdings of a select group of clients in Ether (ETH) and Bitcoin (BTC).
This made BNY Mellon the first major bank in the nation to offer the custody of digital assets and conventional investments on the same platform.
A statement claims that the bank will hold the private keys needed to access the money and offer the same bookkeeping services to fund managers as they do for other assets like equities and bonds.
Roman Regelman, CEO of Securities Services and Digital at BNY Mellon, said, “With Digital Asset Custody, we continue our path of trust and innovation into the evolving digital assets area while embracing leading technologies and engaging with fintech”.
With approximately $43 trillion in assets under custody or administration globally, BNY Mellon has been in business for 238 years.
In 2021, the company established an enterprise digital assets unit to create digital asset solutions and a platform to connect digital and traditional asset custody. This November, the New York financial regulator gave the bank permission for cryptocurrency custody.
According to a recent bank poll, 41% of institutional investors have cryptocurrencies in their portfolios, and 91% of them are interested in investing in tokenized products.
Circle appointed the bank to be the custodian of its USD Coin reserves in March.
In order to assist traditional financial institutions in tracking and analysing crypto assets and enabling big businesses to handle legal risks associated with cryptocurrencies, BNY earlier announced its relationship with blockchain-data platform Chainalysis.