Cryptocurrency Statement From BNY Mellon CEO: “Our Longest Term Move…”

BNY Mellon has announced that it is determined to continue exploring the digital asset space, albeit cautiously.

BNY Mellon Compares Not Entering the Digital Asset Realm to Using Paper Instead of Computers

CEO Robin Vince said at an investment meeting yesterday that digital assets are the bank’s “longest move” and acknowledged that as BNY Mellon, the world’s oldest continuously operating bank, they have to adapt to technology changes:

“We are investing in a future that will likely happen, but it may not happen. But if it does happen, we need to be there too. We think it’s important for us to join the broad digital asset space.”

The bank’s CEO compared ignoring the digital asset space to “being a custodian 50 years ago and sticking to paper and not using computers,” adding: “This won’t be us.”

BNY Mellon is one of several traditional corporate companies entering the digital asset space. Fidelity opened individual crypto accounts in November before filing metaverse trademark applications last month. BlackRock launched a crypto- and blockchain-linked ETF in Europe last August, alongside a private bitcoin trust.

BNY Mellon reported that its fourth-quarter profit fell 38% to $509 million from $822 million a year earlier. According to the WSJ’s report, the bank plans to lay off 3% of its staff, or about 1,500 people.

Last year, the bank issued a statement from New York’s financial regulator to certain customers. bitcoin and Ethereum was approved to accept deposits. While BNY Mellon is working with Fireblocks and Chainalysis as its two main partners in its storage move, it also leverages other firms, including Blockdaemon.

The bank also offers two digital asset platforms, Digital Asset Fund Services and Digital Asset Custody.

Digital Asset Fund Services serves approximately 19 crypto ETFs and mutual funds, including Grayscale’s Bitcoin Trust (GBTC).

*Not investment advice.