In the wake of the progressive spread of cryptocurrencies despite falling prices, BNY Mellon has set up a cryptocurrency custody unit in Ireland
The Bank of New York Mellon Corporation (BNY Mellon), America’s oldest bank, is increasingly active in the crypto field. The bank has launched custody services for cryptocurrencies through its new digital Asset unit based in Dublin.
According to the Business Post, BNY Mellon has launched a digital innovation hub. Now the company wants to provide custodial services for cryptocurrencies to its customers in different parts of the world. The company is regulated by the Central Bank of Ireland and acts as a custodian of cryptocurrencies such as Bitcoin and other digital assets such as non-fungible tokens (NFTs).
In addition, the Digital Innovation Hub will also hold digital central bank money (CBDCs) as soon as it becomes available. According to the report, customers can hold, transmit and exhibit digital resources through the Digital Innovation Hub.
This latest development comes at a time when major banks around the world are expanding their presence in the crypto space. In recent months, Goldman Sachs, Morgan Stanley, and JPMorgan began offering crypto-related services to their clients. Other major banks currently planning to enter the cryptocurrency market include Citigroup, Cowen, UBS and Deutsche Bank.
At the same time, however, many in the traditional financial world are still skeptical about cryptocurrencies. Derville Rowland, director general of financial conduct at the Central Bank of Ireland, told Bloomberg yesterday that there were concerns about cryptocurrencies as an asset class. In their opinion, they are too speculative and currently unregulated investments. The top official of the Central Bank of Ireland added that current and future investors could lose their money if they invest in cryptocurrencies.
Market experts expect strong regulations to regulate cryptocurrencies in Europe when Rowland takes over as head of the European Securities and Markets Authority’s (ESMA) Standing Committee on Investment Management. Rowland will take up this position next month and will be responsible for preparing the rules for the European financial sector.