On October 11, 2022, BNY Mellon, the oldest U.S. bank, announced that it will start to accept selected clients to use its Digital Asset Custody platform. The new platform will allow clients to hold and engage in financial transactions with respect to the popular cryptocurrencies Bitcoin (BTC) and Ethereum (ETH). The move by BNY Mellon to custody digital assets on behalf of clients follows the approval by the New York Department of Financial Service earlier this fall.
As part of its service offerings, BNY Mellon will store the private keys of clients’ cryptocurrency holdings. This means that BNY Mellon will custody the cryptographic key that is required to access and transfer the client’s respective digital assets. BNY Mellon will also provide bookkeeping services pertaining to client’s digital asset transactions to assist clients in their portfolio management.
This development is the latest signal that the traditional financial sector continues to look for ways to respond to market demands in the growing digital assets sector.