Bank of New York Mellon, the oldest bank in the country, announced Thursday that it would start financing bitcoins and other virtual currencies.
The custodian bank will allow virtual currencies to pass through the same monetary network it has used lately for more classic assets, such as bonds and US Treasury stocks. U. S. , After months of analyzing your prototype virtual asset framework.
“BNY Mellon is proud to be the first global bank to announce its goal of providing a built-in service for virtual assets,” Said Roman Regelman, CEO of Asset Management and Head of Digital at BNY Mellon, in a press release.
“The growing demand for virtual assets from consumers, adulthood for complex responses, and advanced regulatory clarity offer us a great opportunity to expand our existing service offerings into this emerging field,” he said.
BNY Executive Mellon added that, pending product research and approval, the bank is expected to begin providing its consumers later this year. The Wall Street Journal first reported the bank’s cryptocurrency announcement.
BNY Mellon shares rose 2% in pre-market after the news.
This resolution represents a step in the component of the country’s largest custodian banks, which specialize in protecting the monetary assets of corporate and private clients.
In the past, primary custodian banks have expressed considerations about potential bank-related regulatory or legal dangers in the cryptocurrency market, but as the costs of bitcoin and other virtual assets continued to rise, they became more popular among asset managers, the hedging budget, and other investors.
Bitcoin, which until 2021 rose 7. 7% to around $48250 at 8:30 a. m. in New York, according to Coin Metrics The virtual currency has risen more than 60% since the beginning of the year.
Individual investors and businesses have become more comfortable with virtual currencies as leading business leaders, adding Tesla CEO Elon Musk, who weigh a handful of assets.
Tesla previously revealed this month that it had purchased $1. 5 billion in bitcoins to “have more flexibility to diversify more and maximize returns on our money flow. “
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