The oldest bank in the US, New York Mellon Corp. will hold, transfer and issue bitcoin (BTC) and other unspecified cryptoassets on behalf of its asset-management clients, the Wall Street Journal reported, citing Roman Regelman, chief executive of BNY Mellon’s asset-servicing and digital businesses. (Updated at 13:22 UTC: updates throughout the entire text.)
According to the report, the bank is already discussing plans with clients to bring their digital currencies into the fold.
Per Regelman, institutional investors started asking the bank and their peers “to treat digital assets as they would their other holdings.”
As of December 2020, the bank, which operates in 35 countries, had USD 41.1 trillion in assets under custody and/or administration, and USD 2.2 trillion in assets under management.
Multiple international banks have already announced their crypto moves as they try to not be left behind and respond to the growing demand by their clients. At the same time, crypto players are getting their own licenses to operate as banks.
As reported, senior political and economic figures have warned banks that they risk falling behind to digital finance networks and providers.
“Conventional banks are underestimating the disruption that is coming [from digital players],” Mohammed Al-Jadaan, the Saudi Arabian Minister of Finance and the Acting Minister of Economy and Planning, said durin an online session at the World Economic Forum this past January.
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