- BNY Mellon can now provide bitcoin custody services.
- The age-old institution has obtained approval from the New York financial regulator to begin offering the service.
- The move comes as institutions attempt to meet a growing demand for cryptocurrency services.
Bank of New York Mellon (BNY Mellon), the world’s largest custodian bank, has launched bitcoin custodial services, according to a Wall Street Journal report.
The oldest U.S. bank said it will begin receiving cryptocurrencies from customers on Tuesday, becoming the first major U.S. bank to protect digital assets alongside traditional investments on the same platform, according to the WSJ report. .
“BNY Mellon obtained approval from the New York financial regulator earlier this fall to begin receiving bitcoin and ether from select customers starting this week,” according to the report. “The bank will store the keys necessary to access and transfer these assets, and will provide the same accounting services on these digital currencies that it offers to fund managers for their portfolios of stocks, bonds, commodities and currencies. other assets.”
The move follows other major financial institutions jumping on the bitcoin bandwagon.
BlackRock, the world’s largest asset management company with over $10 trillion in assets under management (AUM), announced in August that it would begin offering bitcoin trading and custody as part of of a partnership with Coinbase. The offer, available to BlackRock’s institutional clients, would facilitate trading desk and custody operations. Later that month, the asset manager announced that it was launching a one-time bitcoin private trust to meet growing demand for direct exposure to BTC from clients.
“Bitcoin is the oldest, largest, and most liquid crypto-asset, and is currently our customers’ primary focus in the crypto-asset space,” BlackRock said at the time.