BNY Mellon is collaborating with digital asset infrastructure provider Fireblocks to launch an institutional-grade custody solution for cryptocurrencies later in 2022.
According to a report from City A.M., America’s oldest bank has set up a new unit dedicated to providing its clients with ‘an integrated service’ for digital assets, which would cover classic cryptocurrencies and could be extended to stablecoins. Upon launch, BNY customers will be able to store Bitcoin and Ether in its crypto wallets which are powered by Fireblocks technology.
Citing growing client demand, maturity of blockchain and better regulatory clarity, Katey Neate, the chief risk officer at BNY Mellon said “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.”
“I think regulatory clarity is improving, and people are feeling more confident because of that regulatory clarity. It’s still not the Nirvana that we’re looking for, but it’s at least easier to read the tea leaves now and understand what to look for when you’re developing a risk framework,” she added.
Talia Klein, the head of digital asset custody commercial products for BNY Mellon, also told the publication that the crypto service could be coming to Britain after an initial US launch.
“I think what we’re seeing in the UK is that there’s a really vibrant and active digital assets market here,” Klein said.
