According to the CEO of BNY Mellon – Emily Portney – digital assets could form a significant source of revenue for the financial institution from next year onwards.
America’s oldest bank sees the potential of crypto
The Bank of New York, which was founded in 1784 and operates today as BNY Mellon, has been the oldest continuously operating bank for the past year or two.
In a recent interview, Chief Executive Officer Emily Portney confirmed that position. He predicted that bitcoin and alternative coins could make a significant contribution to BNY Mellon’s revenue in 2023.
America’s oldest bank teamed up with Fireblocks in its cryptocurrency endeavors. The latter is a Unicorn fintech platform that provides digital asset custody services to some of the largest crypto investment managers, exchanges and traditional financial institutions. Portney believes that collaboration with such a partner is “foundational to everything we’re going to do.”
The CEO of BNY Mellon also touched on cryptocurrency regulations. He added that global watchdogs should implement Clarity in the space, which would be a move for his bank, given that it is poised to control digital assets. Portney expects regulators to implement the rules during the first half of 2022.
“There are proposals before the Securities and Exchange Commission that have yet to be approved or whether ETFs can actually hold digital assets directly in the future,” she said.
In October last year, the SEC approved the first bitcoin strategy futures-backed ETF in the United States. The development raised hopes that the US financial regulator would also open its arms to the cryptocurrency universe and also allow spot exchange-traded funds to track the performance of bitcoin.
According to prominent TV host Rick Edelman, this type of financial product should see the light of day in the next 24 months.
BNY Mellon’s Crypto Initiative
Speaking of ETFs, it’s worth mentioning that last summer the oldest bank in America partnered with the world’s largest digital asset manager – Grayscale. As a result, the banking giant said it would help convert Grayscale’s BTC Trust into an exchange-traded fund.
Soon after, BNY Mellon, along with five other institutions, backed cryptocurrency trading site Pure Digital. In addition, it assured its clients that it will “explore new digital asset servicing solutions” as the regulatory landscape evolves.
Currently, the bank offers bitcoin custody opportunities to its institutional clients.
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