The banking industry is increasingly looking at the topic of crypto assets. Proof of this is once again with the Bank of New York Mellon Corporation (BNY Mellon), the oldest bank in the United States. It has just announced that it will integrate the compliance services of analytics firm Chainalysis to track cryptocurrency transactions.
BNY Mellon to partner with Chainalysis
As BNY Mellon is quick to point out in its release, it is the first Systemically Important Financial Institution to use these tools from Chainalysis. The bank carries its weight in the financial sector: it was responsible for 46.7 trillion in assets under management, as of 31 December 2021.
We’re thrilled to be the first Global Systemically Important Bank with plans to utilize @chainalysis‘s risk management software as a component of our strategy to develop cryptocurrency services for our clients. https://t.co/BZC88wc7ic pic.twitter.com/BhdJ9WJZ9p
– BNY Mellon (@BNYMellon) February 23, 2022
BNY Mellon’s partnership with Chainalysis will enable the bank to strengthen its risk management programme with compliance tools. It will be able to monitor cryptocurrency transactions. The institution wants to continue its initiatives in the cryptocurrency sector in the years to come:
“This integration will form a component of BNY Mellon’s long-term strategy to develop cryptocurrency-related services for its clients. “
The bank has been positioning itself for some time now. A year ago, it had announced the construction of a custody platform for digital and traditional assets. In March 2021, it had also invested $133 million to buy Fireblocks, a digital asset custody company for institutional clients.
Further reduce institutional investors
Institutional entry into the cryptocurrency space is often seen as an important step for its development. That’s certainly the view of Jonathan Levin, Chainalysis’ head of strategy:
“Chainalysis has always believed that financial institutions are crucial to the overall growth and success of the cryptocurrency industry. “
More broadly, this type of news also serves to show that the financial sector now has the opportunities of cryptocurrencies firmly in mind, with banks slowly shedding their heavy-handedness on the matter.