- BNY Mellon Bank creates a prototype platform to integrate Bitcoin and digital assets into its services.
- The price of Bitcoin surpassed the $48,000 barrier shortly after the bank’s announcement.
Valued at $2 trillion, the Bank of New York Mellon will integrate Bitcoin into its services. The bank will be the custodian of its clients’ BTC funds and other digital assets, according to a report published by The Wall Street Journal.
The banking institution’s CEO, Roman Regelman, stated that assets such as Bitcoin have begun to enter the mainstream. Therefore, the bank is looking to stay at the forefront of innovation by launching its own crypto services. According to the report, the institution plans to treat Bitcoin “like any other asset” under their management.
Like PayPal, Bitcoin custody could expand to other products and services, but Regelman considers it prudent to see how much use its clients will give to the custody service and whether there will be demand for others. BNY Mellon will have a custodian partner that, for the moment, remains undisclosed.
However, it is known that their plans are to allow their clients to use BTC via the system which enables transfers of all their traditional assets managed by the banking institution. To achieve their goals, they have built a prototype that will allow them to measure the interest and participation of their customers.
The CEO of BNY Mellon confirmed that regulations will be a relevant factor in determining the future of its crypto services. In an interview for Coindesk, BNY Mellon’s Head of Advanced Solutions, Mike Demissie, added the following:
We are starting with the anchor in this space which is custody. Then it comes down to what our clients need from us. So that’s not just safekeeping of these assets, they want to leverage them for lending purposes, they want to leverage them for collateral. Then we are also looking at issuing digital assets, like tokenized securities, real assets.
The news has been considered highly bullish. Morgan Creek Digital co-founder Anthony “Pomp” Pompliano said Bitcoin is “slowly but surely” becoming a reserve asset for retail investors and institutions in the financial and corporate sector.