BNY Mellon, the oldest bank in the US, announced that it will begin receiving and storing cryptocurrencies starting from this week, becoming the first large traditional bank to offer crypto custody service in the nation.
BNY Mellon won the approval of New York's financial regulator earlier this fall to be allowed to receive select customers' Bitcoin and Ether. The bank will store the keys required to access and transfer those assets, and provide the same bookkeeping services on cryptocurrencies that it offers to fund managers for their portfolios of stocks, bonds, commodities and other assets.
In February 2021, BNY Mellon unveiled its plans to hold and transfer digital currencies on behalf of investment firms, and has since integrated its crypto custody business into its core accounting platform. It said that it used Fireblocks' software to store digital assets, and used Chainalysis to help analyze and track the path the assets took before they arrived at the bank. The custody service will be offered to select investment-fund firms first. The bank expects to expand it to additional clients in the future, pending regulatory approvals.
Ethereum
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