BNY Mellon started offering its customers cryptocurrency custody services in October 2022. Companies and organisations seek to acquire digital assets as the world learns more about cryptocurrencies and the market grows.
The demand for cryptocurrency services and alternative investment options is rising globally. Banks must instead provide customers a safe and regulated way to engage in the offer rather than simply ignoring it.
Banks all across the world are attempting to investigate cryptocurrencies. A lot of businesses have already jumped in by offering cryptocurrency custody services. The Bank of New York Mellon has announced that it is now accepting applications for cryptocurrency custody services.
According to the Bank of New York Mellon, it will start accepting cryptocurrency from customers on Tuesday. As a result, BNY Mellon will be the first significant US bank to offer both regular banking services and complementary digital asset protection.
Earlier this year, the New York banking regulator gave the bank its clearance. This week, the bank can start taking Bitcoin and Ethereum. The digital asset key will be stored by BNY Mellon, which will also offer bookkeeping services like to those offered for stocks and commodities.
The move marks a crucial turning point in traditional banks’ acceptance of digital assets as a real market and a source of new income.
BNY Mellon: Digital Assets “Here To Stay”
Now the US banking giant has taken a stronger stand regarding digital assets.
The head of digital assets at Bank of New York Mellon (BNY Mellon), Michael Demissie, is convinced that the institutional interest in digital assets won’t be affected by the crash of the bitcoin market in 2022.
Demissie asserted on 8 February 2023 at a conference hosted by Afore Consulting that institutional investors’ keen interest in cryptocurrencies has made the digital asset market “here to stay.”
He further stated,
“What we see is clients are absolutely interested in digital assets, broadly.”
Demissie supported his claims by citing a BNY Mellon survey from October, which revealed that 91% of custodial bank clients are interested in investing in tokenized products based on the blockchain.
Additionally, 86% of institutional participants used a “buy and hold” approach, which may indicate that they view the cryptocurrency market as a long-term investment, according to the report.
88% of those polled also stated that they still intended to make long-term investments in the digital asset industry despite the sharp decline in the bitcoin market in 2022.