The Bank of New York Mellon will launch a service that aims at safeguarding bitcoin for its clients later this year. The entity thinks that bitcoin and other cryptocurrencies are part of the trend that will evolve.
The Bank of New York Mellon (BNY), the oldest in the United States, is taking the path of bitcoin and the world of cryptocurrencies. As its announcement this Thursday, February 11, the BNY will safeguard its clients’ digital assets. Those assets include cryptocurrencies.
The Wall Street Journal (WSJ) reported that the entity with more than $ 41 billion in custody across multiple assets seeks to discuss every plan about these systems with its clients.
According to BNY Mellon’s head of advanced solutions, Mike Demissie, the institution’s new product “focuses on customer interest and demand. Demissie also noted that there is already a platform that will allow the service to operate.
The new service will set up this year, although there is no specific date for this. BNY is always keeping an eye on regulatory activity to ensure that they support the market’s allowance of assets.
Roman Regelman, executive director of digital business and asset services at BNY, said that “digital assets are becoming part of the trend.” Many banks turn their sight and their attention on bitcoin, their rejection of the cryptocurrency seems to be disappearing.
The Office of the Currency (OCC) had already expressed its approval for local banking entities to offer cryptocurrencies services. In particular, the OCC clarified that bitcoin custody could be a modern version of the services that banks provide more traditionally.
The Treasury Department authorized banking institutions to maintain reserves for companies that issue stablecoins, cryptocurrencies whose offer holds values that anchor other assets, such as the dollar or any other national currencies.
Among the organizations that have considered the custody of bitcoin and other cryptocurrencies for their clients, we find Citibank. Before, this and other banks such as JPMorgan and Bank of America rejected cryptocurrencies to the point that they prohibited buying them with their credit cards.
The truth is that, as bitcoin gains ground in the market, many detractors have changed their minds. Now, the quest to get into the world of cryptocurrencies from large funds and companies is so common that even groups like Goldman Sachs consider providing custody services.
Besides, payment services no longer describe bitcoin as a threat but seek to achieve a spot and not lose the train of a market that already exceeds a trillion dollars in capitalization. Thus, PayPal, Visa, and even MasterCard have joined more recently.
The wave of institutional interest has been such in recent months that it is attributed to the significant momentum that bitcoin’s price is experiencing with such surpassing in its all-time highs. The cost of BTC is hovering around $ 48,000 and looks set to hit a new record high.
By: Jenson Nuñez
