Dinsmore & Shohl LLP
  October 17, 2022 - Louisville, Kentucky

Nation’s Oldest Bank Announces Custody Services for Crypto-Assets
  by David A. Lopez-Kurtz

Nation’s Oldest Bank Announces Custody Services for Crypto-Assets

This week, BNY Mellon (“Mellon”), the nation’s oldest bank, announced it was making good on its February 2021 plan to develop the infrastructure necessary to serve as custodian for digital assets. Mellon announced the launch of a proprietary crypto custody software developed in partnership with Fireblocks, a digital asset custody, transfer, and settlement platform. With its announcement, Mellon became the first large U.S. Bank to offer digital asset custody in addition to traditional financial services on a unified platform.

Custodial services are vital for asset managers. Traditional banks – like Mellon – have long held assets for clients so that they can obtain security and accounting over their holdings. Prior to Mellon’s announcement, the only firms providing custody for digital assets were crypto industry specialists, which face significant regulatory uncertainty and lack the robust security and compliance infrastructure of major financial institutions. Now that Mellon has committed to offering custodial services, there may be a rush to market for institutions seeking to establish market share in this emerging space.

Mellon’s decision comes on the heels of a nine-figure Series C funding round for Copper (a London-based crypto custodian), as detailed in company filings in the U.K.

Businesses seeking to navigate the intricacies of digital assets custody, and any other matter relating to blockchain and digital assets, should consult with their Dinsmore counsel to ensure that they are making informed decisions based on the current state of legal and regulatory guidance.

*Tanner is a Law Clerk and not yet licensed to practice law.




Read full article at: https://www.dinsmore.com/publications/nations-oldest-bank-announces-custody-services-for-crypto-assets/