Nikolas Sargeant
BNY Mellon, a major U.S. bank, is set to enter the cryptocurrency custody business, focusing on Bitcoin and Ether for its exchange-traded product (ETP) clients. This move follows a recent Securities and Exchange Commission (SEC) review that exempts the bank from the SAB 121 rule for these specific services.
SEC Review Paves Way for Crypto Custody Expansion
The SEC's Office of the Chief Accountant reviewed BNY Mellon's approach to crypto custody earlier this year. The regulator did not object to the bank's decision to exclude these crypto assets from its balance sheet liabilities, a significant departure from the usual SAB 121 requirements.
BNY Mellon's Strategic Move in the Evolving Crypto Landscape
This development marks a crucial step for BNY Mellon in integrating cryptocurrency services into its traditional banking operations. The bank aims to expand its crypto custody services further, pending ongoing discussions with the SEC and other banking regulators. This cautious yet progressive approach highlights the growing intersection between traditional finance and digital assets, as regulatory frameworks continue to evolve.
