BNY Mellon to Support Cryptocurrency Trading Platform Pure Digital

The Bank of New York Mellon Corporation and State Street Corporation joined four other institutions in backing the digital asset exchange Pure Digital. Furthermore, America’s oldest banking organization plans to expand its crypto offerings to clients.

BNY Mellon Diving Deeper into Crypto

According to a recent Financial Times report, one of the largest custodian banks – BNY Mellon – publicly declared its support towards the London-based cryptocurrency exchange Pure Digital. Thus, the institution joined five other banks that already backed up the trading venue, with State Street Corporation being one of them.

The move suggested that customers have been recently showing a growing demand for virtual currencies. On top of it, BNY Mellon assured its clients that it would “explore new digital asset servicing solutions as the regulatory landscape develops.” Jason Vitale – Global Head of Foreign Exchange at the bank – noted:

“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.”

Pure Digital will reportedly be the first trading platform for digital assets where banking institutions would be the driving force. BNY Mellon, State Street, and the other four unidentified banks supporting the project would aim to create a cash cryptocurrency exchange, hoping to compete against larger industry players. Pure Digital’s Co-Founder – Campbell Adams – commented on the news:

“We are not worried about aligning ourselves with banks. The crypto market needs banks, I don’t think it can scale without them.”

BNY Mellon Expanded Its Crypto Services

America’s oldest bank has proved its support towards the digital asset space numerous times. For example, earlier this year, it announced plans to expand its cryptocurrency endeavors out of the borders of the States. Namely, BNY Mellon intended to release custodial services in Ireland through its local branch.

In addition, last week, the institution partnered up with the world’s largest digital asset manager – Grayscale Investments – in its efforts to convert the Bitcoin Trust into BTC ETF. As a result, BNY Mellon would provide the company with fund accounting and administration starting later this year.

“Engaging BNY Mellon is an important milestone as part of our commitment to converting Grayscale Bitcoin Trust into an ETF. BNY Mellon has a long-standing reputation as a trusted provider and has established one of the first teams dedicated to servicing the growing digital currency asset class.” – noted Grayscale’s CEO – Michael Sonnenshein.

Featured Image Courtesy of Bloomberg