Bank of New York Mellon Corp. is set to begin offering cryptocurrency custody to its clients as the market nears the $1.5 trillion mark.
Crypto Custody Meets Legacy
America’s oldest bank, Bank of New York Mellon Corp., will officially offer crypto-custody services to its clients.
In the announcement, Mellon Corp. said the bank would also issue cryptocurrencies for clients of its asset management wing. The bank plans to integrate crypto into its legacy systems in the long run.
Speaking on the new service, Mellon Corp.’s chief executive, Roman Regelman, said, “digital assets are becoming part of the mainstream.” The bank’s crypto-custody service is set to tap into that.
Alexander Hamilton founded Bank of New York Mellon Corp. in 1784. Today, the bank has over $41.1 trillion worth of assets under direct or indirect custody.
It also has $2.2 trillion in assets under management and operates in 35 countries worldwide. Its founder currently adorns the $10 bill in the United States.
The Mainstream Finally Turns
Indeed, Mellon Corp. follows several banks worldwide that jumped into the cryptocurrency scene last year. In December, Italy’s largest bank, Banca Generali, revealed plans to partner with Conio Investments to provide a crypto-custody service for its customers.
The bank invested $14 million in the fintech company to acquire a stake, giving it the ability to integrate its cryptocurrency services. The services are due to launch this year. Moreover, the financial services company, Northern Trust, launched a cryptocurrency custody platform called Zodia Custody to respond to client demand.
The platform integrates custody for Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litceoin (LTC) and Bitcoin Cash (BCH).
Integration or War?
As more and more mainstream banks and financial institutions enter the cryptocurrency space, not only do they legitimize it, but they signal that integration is favored over war.
These companies respond to the demands of clients and pressure from competition. With companies such as Tesla making big moves into the industry, as well as competitors like Visa signaling support, it seems that Mellon Corp. can’t hide.
Moreover, when the traditional industry failed to innovate, cryptocurrency and blockchain answered with Decentralized Finance (DeFi). Now, it’s no longer a question of if the crypto-world will take over, but when.
America’s oldest bank wants to stay ahead.
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