BNY Mellon will continue to focus on crypto and its underlying ledger technology

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Neither the author, Tim Fries, nor this website, The Tokenist, provides financial advice. Please review our website policy before making any financial decisions.

Robin Vince, CEO of the world’s oldest continuously operating bank, BNY Mellon, revealed during Friday’s earnings call that his organization is committed to continued exploration of digital assets, albeit with caution. The chief executive identified cryptocurrencies as the banks’ longer-term game.

BNY Mellon mainly interested in broader opportunities offered by digital assets

Robin Vince, CEO of BNY Mellon, reiterated his view that digital assets should remain a priority for his bank. Vince, however, also said that the focus will not be so much on the cryptocurrencies themselves, but more on the broader opportunity that exists through digital assets and distributed ledger technology.

The Mellons CEO also expressed his belief that the calamities that have rocked the entire crypto industry throughout 2022, perhaps the most significant being the recent collapse of FTX, only underscore the need for trusted regulated providers in the digital asset space. BNY Mellon officially entered the digital asset custody business with the launch of its dedicated platform last October.

On the call, Vince also said he doesn’t believe cryptocurrencies will become a major source of revenue for the bank in the near future. According to the CEO, they expect digital assets to be negligible from a revenue standpoint for perhaps another five full years. While calling cryptocurrencies the banks’ longer-term game, Vince acknowledged that ignoring digital assets would be like being the custodian of 50 years ago and sticking to paper and not adopting. computers, but also added that any investment made in the sector is done both carefully and deliberately.

Large institutions are increasingly interested in digital assets

Despite the crypto winter, 2022 has proven that many large traditional financial institutions share Vinces’ view that it is unwise to ignore digital assets and have begun to engage with the sector. Perhaps the two most notable institutions to take an interest in cryptocurrencies are primarily Bitcoin, BlackRock, and Fidelity.

Already in April 2021, it was reported that BlackRock was quietly trading BTC futures, and in May its CEO Larry Fink, previously a skeptic of digital assets, revealed to shareholders that BlackRock was studying cryptocurrencies. currencies. In August 2022, BlackRock entered into a landmark agreement with Coinbase and began offering direct exposure to spot Bitcoin to institutional investors.

Fidelity, on the other hand, has a history with Bitcoin dating back to at least 2014. However, it has also made leaps and bounds when it comes to digital assets over the previous year. In September, Fidelity announced plans to begin offering cryptocurrency to its 34 million retail customers and maintained its Bitcoin offering in its 401(k) despite pressure from a group of U.S. senators three times. in 2022.

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About the Author

Tim Fries is the co-founder of The Tokenist. He has a B.Sc. in Mechanical Engineering from the University of Michigan and an MBA from the University of Chicago Booth School of Business. Tim was a senior partner on the investment team in the US Private Equity division of RW Baird and is also a co-founder of Protective Technologies Capital, an investment firm specializing in detection, protection and control solutions.

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