BNY Mellon, the world’s largest custodian bank, is set to integrate Chainalysis, a blockchain data platform, to help monitor and analyze cryptocurrency products. The move is part of the institution’s strategy to build out cryptocurrency services for its clients.
BNY Mellon’s bold move
According to an official announcement, the NY-based firm plans to integrate the full Chainalysis compliant software suite into a multi-asset digital custody and administration platform.
It will help its clients assess cryptocurrency trends and “fine activity in support of its compliance and due diligence practices”. In short, BNY Mellon seeks to track the assets of the custody services it provides to its clients.
Under the risk management software offered by Chainalysis, KYT (Know Your Transaction) is tasked to perform consistently. It monitors transactions in real-time for all crypto assets and detects “high-risk” activity.
Chainalysis’s investigative tool – Reactor – provides companies with a thorough due diligence into suspicious activity. Chainalysis’ Cryptos is the reference directory for the on-chain activity of cryptocurrency services. The software is designed to help financial institutions understand the risks associated with digital assets and investment opportunities.
Jonathan Levine, Co-Founder and Chief Strategy Officer of Chainalysis, highlighted the importance of financial institutions to the growth of the cryptocurrency industry, saying,
“BNY Mellon is the best of both worlds: it has a reputation for fostering an innovative and forward-thinking culture as well as being one of the most trusted banks in the world. We are proud to collaborate with them as they launched their digital Started property business.
BNY Mellon’s Crypto Efforts
It was just a year ago that the bitcoin market jumped after BNY Mellon announced the addition of support for cryptocurrencies on behalf of its asset-management clients. It partnered with Grayscale to assist the world’s largest digital asset manager in converting its BTC trust into an exchange-traded fund (ETF).
The CEO of BNY Mellon, Emily Portney, predicted in a recent interview that bitcoin and altcoins have the potential to contribute significantly to the bank’s revenue in 2023. He said regulatory authorities around the world should implement Clarity in the space, which execution idea would be a stepping stone for his bank.
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