Bitcoin to Come to America’s Oldest Bank, BNY Mellon

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The Bank of New York Mellon Corp., the country’s oldest bank, is making the leap into the cryptocurrency market.

The custodian announced Thursday that it will hold, transfer and dispense bitcoin and other cryptocurrencies on behalf of its wealth management clients. Over time, BNY Mellon will enable these digital assets to traverse the same lines used by other, more traditional managerial holdings – from treasuries to technology stocks – using a platform now in prototype. The bank is already discussing plans with customers to bring their digital currencies into the fold.

“Digital assets are becoming mainstream,” said Roman Regelman, general manager of BNY Mellon’s asset service and digital business.

This is a big step for Wall Street back-office banks, who are reluctant to come into direct contact with crypto markets due to concerns about regulatory, legal, and stability risks. As the prices of Bitcoin and other digital assets have continued to rise, they have become increasingly popular with asset managers, hedge funds, and other institutional investors.

And the top executives of these companies urged BNY Mellon and her colleagues to treat digital assets like their other holdings, Regelman said.