The Bank of New York Mellon Corporation, usually shortened to BNY Mellon, will allow its clients to stash their cryptocurrencies in the bank’s digital wallets.
With investors fearing that their assets could be snatched from built-in or web-based wallets, they usually move their digital funds to more secure places like hardware wallets. On the other hand, funds kept in banks are insured, and, usually, much more secure.
The Bank of New York has been around for 237 years, before merging with the Mellon Financial Corporation and becoming BNY Mellon in 2007. The report by a business newspaper City A.M. suggests that the investment bank will offer institutional clients to hold digital assets like Bitcoin and Ethereum.
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Based on the post, BNY Mellon will offer their own crypto wallets powered by Fireblocks, which is a digital custody platform with enterprise-grade insurance and security, and the only platform that insures digital assets both kept in the bank, and during transfers.
The project was being worked on since last year, and it is expected that initially the custodian services by BNY Mellon will be offered to US citizens. Plans for expansion into global markets will be based on the demand for such services.
However, the Head of Digital Asset Custody Commercial Products at BNY Mellon, Talia Klein, spoke on the services reaching other places in the world. According to her, the United Kingdom will seemingly be the first stop as it has a "really vibrant and active digital assets market…"
Initially, the investment bank will dabble in the two primary cryptocurrencies BTC and ETH while the regulatory framework on digital assets in the United States is still unclear.
