Data Backup Digest

Whether you love it or hate it, cryptocurrency is here to stay. While the volatility of the market currently causes cryptocurrency to go up and down in price, at seemingly random intervals, it’s stable enough to attract the attention of the world’s largest custodian bank.

Cryptocurrency and BNY Mellon

America’s oldest bank and the world’s largest custodian bank, BNY Mellon, has recently launched their live service to store and protect cryptocurrency. Known as the Digital Asset Custody platform, the new service is meant to bridge the gap between traditional and digital assets. The team with BNY Mellon has also announced their plans to create a suite of digital asset services in the near future.

Robin Vince, chief executive officer and president of BNY Mellon, spoke in a recent press release by saying: ''“Touching more than 20% of the world's investable assets, BNY Mellon has the scale to re-imagine financial markets through blockchain technology and digital assets. We are excited to help drive the financial industry forward as we begin the next chapter in our innovation journey.”

A Storied History

BNY Mellon has a legacy spanning over 235 years in the U.S. Before launching their Digital Asset Custody platform, the company held a survey to gauge interest. Highlights of the survey are as follows:

• 97% of institutional investors agree that tokenization will have a positive effect on the entire industry
• 91% of institutional investors show some amount of interest in tokenized products, including cryptocurrency
• 88% of institutional investors are already comfortable with the blockchain and similar technologies that are used to manage and protect cryptocurrency
• 72% of institutional investors would be interested in a single provider that meets all of their digital asset needs
• 70% of institutional investors would increase their investments in cryptocurrency and other digital assets if working with a recognizable institution
• 41% of institutional investors currently hold cryptocurrency
• 15% of institutional investors are planning on investing in cryptocurrency within the next five years

The results of the survey have certainly spurred the development of the Digital Asset Custody platform. Although BNY Mellon isn’t the first financial institution to show interest in cryptocurrency, and they’re certainly not the first to begin investing in digital assets, their newfound interest in the cryptocurrency market shows just how serious financial institutions are when it comes to cryptocurrency.

Roman Regelman, CEO of Securities Services and Digital with BNY Mellon, was recently quoted as saying: “With Digital Asset Custody, we continue our journey of trust and innovation into the evolving digital assets space, while embracing leading technology and collaborating with fintechs.”''

The Future of Bitcoin and Other Cryptocurrency

While the long-term future of Bitcoin and other forms of cryptocurrency is still uncertain, support from BNY Mellon will only help bolster investor interest. Their recent provided tremendous insight into the willingness of institutional investors to accept cryptocurrency and other digital assets – now it’s up to the banks and financial institutions of the world to capitalize on their willingness and normalize cryptocurrency once and for all.