Cryptocurrency adoption levels struck a vital milestone shortly today as the oldest US-based bank, BNY Mellon, will begin to hold, transfer, and issue BTC and other cryptocurrencies on behalf of its customers. The bank’s chief executive confirmed the decision with cryptocurrencies’ magnificent entrance to the mainstream stage.
BNY Mellon To Become Bitcoin Custodian
Established over two centuries ago and headquartered in New York City, The Bank of New York Mellon Corporation (BNY Mellon) is an investment banking services holding company with approximately $20 billion in yearly revenue (as of 2019).
As cited in a Wall Street Journal report from earlier today, the bank has grown to be one of the latest prominent institutions to enable Bitcoin custody for its clients. Essentially, this means that customers will have the option to go through a well-established and regulated organization to transfer and hold their cryptocurrency investments.
Being a new initiative offered by the large bank, it needed a designated platform to provide this service. Consequently, BNY Mellon has developed a prototype operating similarly to another that works with more traditional holdings such as stocks and treasuries.
It’s worth noting that the bank’s decision comes in a rather compelling moment. From one side, institutions and corporations have continuously allotted funds in the principal cryptocurrency, which has boosted its adoption levels and global acceptance. On the flip side, international regulators have doubled-down on their view that the asset has to be put into a legislative structure to wipe out any potential illicit involvements.
Prompted By Significant Client Demand
Notwithstanding the regulative contingencies around the cryptocurrency, BNY Mellon’s chief executive, Roman Regelman, stated that their decision immediately affects customers’ growing demand. He remarked that the expanding prices, with bitcoin nearing $50,000, have made the entire industry more engaging to asset managers, hedge funds, and other institutions. Some of the so-called “smart money” representatives have referred to America’s oldest bank for cryptocurrency services.
“Digital assets are coming part of the mainstream,” continued Regelman, while emphasizing that bank customers would be able to bring their cryptocurrency holdings to BNY Mellon even before establishing their size.
Although the executive indicated that Wall Street has now started to embrace digital assets, he confirmed that the entire process could take up to five years from this period. BNY Mellon has also designated a team to review all digital asset-related operations.
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