New York Mellon Bank, the oldest bank in America, has announced plans to store, transfer and issue Bitcoin (BTC) and other cryptocurrencies as an asset manager on behalf of its clients.
The decision was allegedly taken by institutional investors – the top management of BNY Mellon’s clients – at the height of the 2021 season for this asset class.
As the Wall Street Journal notes, BNY Mellon is hardly a known first name in traditional economics to use digital assets like Fidelity Investments, which have always been used. Nevertheless, it is the first national trustee bank to commit to implementing a cryptocurrency vault for its customers in the short term, that is, “later this year.”
“Digital assets have become part of the mainstream,” Roman Rigelman, chief executive of Active Services Bank and Digital Business, quoted the Wall Street Journal as saying.
According to the report, BNY Mellon is planning to manage cryptocurrencies using the platform, now in the release of a prototype that will also be used to manage traditional assets like vaults and stocks.
BNY Mellon also has no restrictions on the types of cryptocurrency they wish to store. It is reported that a special group of bank managers, led by Mike Demecy, is tasked with monitoring the integrity and management of cryptocurrency storage in all departments of the bank.
As BNY Mellon continues its plans, Regelman still expects that the full integration of digital assets into traditional banking infrastructure will take another three to five years.