Bitcoin invades the banking industry – The Bank of New York Mellon (BNY Mellon), the oldest banking institution in the country, will offer banking services conservation de bitcoins and digital assets for its institutional clients.
Mellon Bank, a bank like no other
Founded in 1784, the Bank of New York merged with Mellon Financial Corporation in 2007 to create the world’s largest custodian of assets.
BNY Mellon is both an asset manager and a custodian. As such, the institution manages 2,000 billion assets and retains more than 38 trillion for its clients: investment funds, insurance companies, or even (obviously) banks.
Concretely, a depositary can keep all types of assets and must be able attest of their existence at all times. This function is mandatory in most legal systems.
BNY Mellon therefore should not invest in Bitcoin for now. However, the arrival of this secular institution on the crypto market should encourage its clients to invest.
“Digital assets are part of the mainstream”
Banking institutions have been working on this type of project for several years. However, they have always waited for the green light from the regulator before offering their services. The signal was given by l’Office of the Comptroller of the Currency who authorized the US banks to use digital assets For their operations common.
“We have seen an increase in customer interest and demand. It’s only natural that we use our reputation for reliability and innovation to be the first to bridge the gap between traditional and digital assets. “
Todd Gibbons, CEO de la BNY Mellon
For now, the US bank has announced that the storage of Bitcoin and other assets would be available. However, we do not have more details on these “other assets”.
Custodian banks like BNY Mellon have increasingly turned to technology to reduce costs. Many of the services they provide to the investment community are essential, but they tend to be less profitable than going public or giving loans.
–
