BNY Mellon Launches Digital Asset Custody Platform in the U.S.

Fazzaco learned that BNY Mellon launched its Digital Asset Custody platform in the U.S. on Tuesday, which makes it available for select clients to hold and transfer bitcoin and ether.

This move reinforces BNY Mellon's commitment to support client demand for a trusted provider of both traditional and digital asset servicing. To meet the commitment, the bank established an enterprise Digital Assets Unit in 2021 to develop solutions for digital asset technology, aiming to introduce the industry's first multi-asset platform to connect digital and traditional asset custody.

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According to a survey sponsored by BNY Mellon, institutional clients have showed significant demand for a resilient, scalable financial infrastructure. Almost all institutional investors (91%) expressed interest in tokenized products. Besides, 41% of institutional investors currently hold cryptocurrency in their portfolios, and another 15% expect to do so in the next two to five years. To drive digitalization, the bank has recently built partnership with Xceptor Tax Platform​.

In addition, clients across the digital asset space are also in strong need of security and compliance at present or in the future, for which BNY Mellon has been working closely with leading fintechs in the industry. The bank made strategic investment in Genesis Global and tapped digital asset technology specialists Fireblocks and Chainalysis to integrate their technology. 

Robin Vince, Chief Executive Officer and President at BNY Mellon, said: "Touching more than 20% of the world's investable assets, BNY Mellon has the scale to reimagine financial markets through blockchain technology and digital assets. We are excited to help drive the financial industry forward as we begin the next chapter in our innovation journey."

"As the world's largest custodian, BNY Mellon is the natural provider to create a safe and secure Digital Asset Custody Platform for institutional clients," said Caroline Butler, CEO of Custody Services at BNY Mellon. "We will continue to innovate, embrace new technology and work closely with clients to address their evolving needs."