A validation of crypto from a main bank in the financial system by BNY Mellon to provide bitcoin services
- Bank of New York Mellon, the oldest bank in the country, said Thursday that the financing of bitcoin and other digital currencies would begin.
- Ultimately, it would allow digital currencies to move through the same financial network that more conventional holdings such as the U.S. currently use. Bonds and equities in the treasury.
- "BNY Mellon is proud to be the first global bank to announce plans to provide digital assets with an integrated service," said Roman Regelman, BNY Mellon's Head of Digital.
- At 8:30 a.m., Bitcoin increased by 7.7 percent to around $48,250 at a robust start to 2021. According to Coin Metrics in New York,
Bank of New York Mellon, the oldest bank in the country, said Thursday that the financing of bitcoin and other digital currencies would begin.
Ultimately, the custody bank would allow digital currencies to move through the same financial network that it is currently using with more conventional companies such as the U.S. After months of review of the prototype digital asset platform, Treasury bonds and equities.
Roman Regelman, CEO of asset servicing and Head of Digital at BNY Mellon, said in a press release, 'BNY Mellon is proud to be the first global bank to announce plans to provide an integrated service for digital assets.
"Growing client demand for digital assets, maturity of advanced solutions, and improving regulatory clarity present a tremendous opportunity for us to extend our current service offerings to this emerging field," he said.
The BNY Mellon executive added that the bank should begin providing the services to its customers later this year, pending product review and approvals. The bank's cryptocurrency announcement was first recorded by the Wall Street Journal.
In premarket trading following the report, BNY Mellon's shares grew 2 percent.
The transition represents an important step for the most prominent custodian banks in the world, which specialize in protecting the financial assets of client companies and individuals.
In the past, major custodian banks have raised concerns regarding possible regulatory or legal threats in the cryptocurrency market banking business. But as prices for Bitcoin and other digital assets have continued to grow, money managers, hedge funds and other institutional investors have become more common.
At 8:30 a.m., Bitcoin increased by 7.7 percent to around $48,250 at a robust start to 2021. According to Coin Metrics in New York, Since the start of the year, the digital currency has rallied more than 60 percent.
As high-profile business leaders, including Tesla CEO Elon Musk, throw their weight behind a handful of properties, individual investors and corporations alike have become more comfortable with digital currencies.
Tesla disclosed earlier this month that for "more flexibility to further diversify and maximize returns on our cash," it bought $1.5 billion worth of bitcoin.