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BNY Mellon, the world’s largest custodian bank, is exploring the possibility of offering digital asset custody services in Asia. This news has been greeted with enthusiasm by many in the crypto community, as it indicates that a major financial institution is taking steps to legitimize and institutionalize cryptocurrency trading.

The bank’s President and CEO, Robin Vince, said digitalization is an important topic in Japan. He also said that it is vital for the bank’s operations worldwide and having a large-scale platform is very helpful in this regard.

Vince said BNY Mellon’s ability to accomplish more due to its large size is a really positive thing for our business and its customers.

Vince said digital asset trading is a new area of ​​development for America’s oldest bank. BNY Mellon was the first U.S. bank to provide an in-house custodial service for digital assets when it did so three months ago, after creating a dedicated unit for the business in 2021 and then launching the service three months later.

Before extending the service to other markets, the bank will first carry out a study of the demand with institutional investors and will take into consideration a certain number of other variables.

As the world’s largest custodian, the bank believes that the world will see an increase in the number of assets that exist as tokens and are managed on blockchains over the next 10, 20 or 30 years, and the bank wants to be a part of this transformation.

Tokenization will result in an increase in the importance of protection against malicious attacks. According to Vince, BNY Mellon has invested in Fireblocks, a company that offers custodial services for cryptocurrencies, and the two companies have collaborated on the development of technologies to protect digital assets.

BNY Mellon CEO Extremely Bullish on Crypto

Vince is an enthusiastic supporter of cryptocurrency. On January 13, during an earnings call, the CEO said investing in digital assets was the most profitable bet for financial institutions over the long term.

Vince went on to say that the refusal of banks to recognize the expanding crypto asset market was analogous to being a custodian in the 1960s and continuing to use paper ledgers rather than adopting computer technology; however, that would not be the case with his bank.

In 2022, BNY Mellon managed to get permission from New York financial authorities to accept Bitcoin and Ethereum deposits from a limited number of consumers.

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