BNY Mellon is investing in crypto trading platform Pure Digital, along with five other banks.
Pure Digital is aiming to compete with Coinbase and FTX for institutional clients.
The move suggests BNY Mellon is seeing more institutional demand for cryptocurrencies.
Share this article
America’s oldest bank furthers its involvement with cryptocurrencies.
BNY Mellon Backs Pure Digital
The Bank of New York Mellon has joined five other banks in backing the institutional Bitcoin trading platform Pure Digital.
The 237-year-old institution announced its plans to add the institutional Bitcoin exchange Pure Digital to its list of crypto-based ventures Wednesday. BNY Mellon will join five other banks who are already backing the platform, including fellow custody bank State Street.
As reported by the Financial Times, BNY Mellon will provide public backing for Pure Digital. It also intends to trade on the platform. The report outlines how BNY Mellon, State Street, and the other unnamed backers aim to create a cash cryptocurrency trading venue to compete against larger industry players such as FTX and Coinbase. It’s set to become the first cryptocurrency trading platform led by banks. According to Pure Digital co-founder Campbell Adams, the first Bitcoin trade is scheduled to take place on the new exchange within a week.
Commenting on the Pure Digital partnership, Jason Vitale, global head of foreign exchange at BNY Mellon, said:
“Digital assets are only going to become more embedded in global markets in the years ahead, and this collaboration accords with BNY Mellon’s wider strategy to develop a digital asset capability for clients across the entire trade life cycle.”
BNY Mellon first started offering crypto custody services to its clients back in February, citing an increase in institutional interest. Since then, the bank has announced it will provide custody and management services for several high-profile clients, including Grayscale Investment’s illustrious Bitcoin trust.
Pure Digital CEO Lauren Kiley also commented on custody banks and crypto adoption. She stated that while Pure Digital had spoken to many top-tier banks, custody banks were more advanced as they were the first to see demand for crypto-related services.
In addition to providing crypto custody services for institutional clients, BNY Mellon has also actively invested in major players in the crypto industry. In March, the bank helped finance the crypto management firm Fireblocks with a $133 million investment.
As BNY Mellon increases its presence in the crypto industry through ventures like Pure Digital, the bank seems set on attracting institutional interest from traditional financial markets. While crypto markets have retreated from their highs earlier this year, institutional involvement with cryptocurrencies is showing no signs of slowing.
Disclaimer: At the time of writing, the author of this feature owned BTC and ETH.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
BNY Mellon Joins $133M Investment in Crypto Startup Fireblocks
The new funding brings Fireblocks’s valuation just shy of $1 billion as Fireblocks. America’s Oldest Bank Taps Fireblocks BNY Mellon’s latest crypto investment is likely linked to its new plan…
BNY Mellon to Assist Grayscale with Bitcoin ETF Plans
Grayscale Investments has selected the Bank of New York Mellon as its asset servicing provider for the Grayscale Bitcoin Trust. The move is part of the firm’s commitment to converting…
BNY Mellon Offers Bitcoin Custody, Says Crypto Is “Mainstream…
$2 trillion investment bank BNY Mellon will offer Bitcoin custody to its clients after stating that digital assets are seeing widespread adoption. BNY Mellon Adopts Bitcoin BNY Mellon works with…
Be the first to comment