BNY Mellon, the oldest bank in the United States, has just begun providing cryptocurrency custody services for certain institutional clients. Founded by America’s first Treasury Secretary Alexander Hamilton in 1784, the financial institution has taken a huge step into the digital asset space. BNY Mellon, which has $43 trillion in assets under custody and/or administration and manages $1.9 trillion in assets, is responding to growing customer demand for cryptocurrency services. The company has partnered with Fireblocks, a crypto-industry, institution-focused custody services firm, and Chainalysis, a blockchain data and security firm, to provide these services.

BNY Mellon’s move into the digital asset space further highlights how cryptocurrencies are becoming more accepted by institutional investors. The bank estimated that over 40% of institutional investors currently have some exposure to cryptocurrencies in their portfolio. This action represents a big turning point in the financial landscape.

Instead of trying to develop the technology entirely in-house, BNY Mellon has made savvy partnerships with leading firms in the crypto ecosystem. Fireblocks offers custody service while Chainalysis helps assure blockchain data and security. This strategy positions BNY Mellon to take advantage of current expertise and infrastructure to bring crypto custody services to market in a timely and cost-effective manner.

“We are on a journey towards a future where blockchain and related capabilities will transform the financial services landscape,” - Mike Demissie, head of digital assets and advanced solutions at BNY Mellon

BNY Mellon hasn’t been the only large custody bank to get on the digital asset train. It is unique as the first to provide this new service. Its entry into the digital assets space, driven by customer demand, marks a significant step in the evolution of financial services.

“Touching more than 20% of the world’s investable assets, BNY Mellon has the scale to reimagine financial markets through blockchain technology and digital assets,” - BNY Mellon CEO and President Robin Vince

As Caroline Butler, BNY Mellon’s CEO of Custody Services, said, secure custody is foundational for moving into the digital asset space. When it comes to institutional investors, security and reliability become top priority. They require a trusted partner with the tools and experience to protect their most valuable digital assets.