BNY Mellon Enters the Bitcoin Space
Bank of New York Mellon, one of the oldest banks in the United States, created history on 11th Feb 2021 with the announcement of entering the lucrative world of digital currency. BNY Mellon has followed the upward growing trend of bitcoin; as per the news report, the value of bitcoin reached a record-breaking all-time high of 7.4% to ($48,364).
MicroStrategy has chosen digital currency to lock most of the company’s reserve assets and holds as many as 71,079 bitcoins. Grayscale, a cryptocurrency investment market leader, holds $30 billion in bitcoin. Square Inc., the financial service and payment service provider purchased $50 million worth of bitcoins, which makes 1% of the total assets of the company. Furthermore, Galaxy digital holdings, CoinShares Group, PayPal, Visa, Ruffer Investment Company, 3i Q, The Bitcoin Fund are a few corporates that have capitalized on the crypto market.
But Tesla’s $1.5 billion investment in bitcoin made the loudest noise, loud enough to cause bitcoin’s value to rise by 20%, soon after the purchase. Media reports claim that this is a record-breaking 300 % growth in the bitcoin price since October 2020. Konstantin Anissimov, Executive Director at CEX.IO, one of the Best Crypto Exchanges speculate that the price will rise further to reach the $50,000 mark.
BNY Mellon, following in the footsteps of major corporates, especially MasterCard, has stepped into the territory of cryptocurrencies. It will join hands with its partners in the cryptocurrency space to help the customer use crypto and regular currency cross-platform using their services. The bank has $41 trillion worth of assets in its impressive financial portfolio and is set to introduce a digital custody department exclusively for crypto solutions. As per the news report, the bank will support all kinds of crypto-related transactions to support businesses.
This new development will help the cryptocurrency space. By offering mainstream financial services for regular money like USD, the cryptocurrency has a fair chance to go through the well-established channel for monetary transactions like the U.S. Treasury Bonds and equity share markets. Roman Regelman, CEO at Asset Servicing and Head of the Digital servicing unit, expressed that BNY Mellon bank is thrilled to extend its financial services to cryptocurrency exchanges.
He further elaborated that the bank plans to leverage from the increasing traffic of crypto transactions in the cryptocurrency market. In view of this lucrative market opportunity, the company plans to provide premium service to its customers to gain a competitive advantage by bridging the gap between the demand for digital currency & related services and the supply of standard & secure transactions.
