- The Oldest bank in the U.S., BNY Mellon, to start financing cryptocurrencies.
- The CEO of Asset Servicing, Relgelman, says digital assets are the future.
- The bank will allow the cryptocurrencies to pass through its network just like US. Treasury bond.
- He also said that it will take about 3-5 years for traditional financial institutions to completely switch to digital assets.
BNY Mellon to Provide Crypto Services To Users
Lately, traditional institutions have refused to be sidelined in the current crypto frenzy and are already stepping up their game. The recent outburst in the popularity of cryptocurrencies and DeFi has led many of them to search for ways to provide their users with crypto services.
The oldest American custody bank, BNY Mellon, said recently that it is planning to allow its customers to transact in cryptocurrencies.
The bank said its going to start financing bitcoin and other crypto currencies, claiming that digital assets are the future. It further revealed that it is going to allow the cryptocurrencies run on its network the same way as its traditional assets such as the U.S. Treasury bonds.
The rationale behind the company’s decision is due to the interest of institutional investors – who are its top clients – in bitcoin. A report from Wall Street revealed that BNY is not the only bank preparing to get into the crypto market. Well established firms like JP Morgan are already into cryptocurrency for a while.
Nevertheless, BNY Mellon will be the first national custodian to offer cryptocurrency to its customers. The bank said that the platform through which it’s going to monitor and manage its cryptocurrencies is at the prototype stage.
It revealed further that the integration of the digital assets and the bank’s activities will be directed by a separate team to be headed by Mike Demissie, Head of Advanced Solutions.
Providing Full Crypto Services May Take Time – Roman Regelman
Roman Regelman, the CEO of Asset Servicing and Head of Digital, said that digital currencies are getting more attention but he believes that the full integration of digital assets into the conventional banking system is still a little faraway.
However, since the bank released the news revealing their plans to invest in bitcoin, it has experienced a 2% rice in its stock price. The bank also revealed that it should begin its crypto operation before the year runs out.
This move by BNY Mellon is a very significant one for the bank and will also boost the public acceptance of blockchain and digital assets. Many crypto enthusiasts are certain more traditional institutions will still embrace digital assets.
Cryptocurrencies are still growing and are not yet at their full stature. However, there is no doubt it would completely replace certain traditional methods of finance in the near-term.
Lately, many large traditional institutions are liaising with crypto-based companies to launch their crypto services.
Blue RidgeBank announced sometimes ago that it had liaised with LibertyX, an American bitcoin ATM software provider, to allow its customers to trade bitcoin via its ATMs. A Russian bank, Sberban, also recently requested permission from the Bank of Russia to launch its own native coin (Sbercoin).
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