BNY Mellon has launched digital asset custody services in the country, while the Bank of Ireland warns investors of the risks associated with investing in cryptocurrencies.
BNY Mellon, America’s oldest bank, started offering custody services in Ireland through its local branch. The country’s central bank, on the other hand, underlined “major concerns” about the growing popularity of Bitcoin and other digital assets.
Bank of New York Mellon Corporation, simply known as BNY Mellon, is America’s oldest banking institution. Since the beginning of the year, the agency has been highly influential in the cryptocurrency industry and is one of the first US giants to offer surveillance services in the country.
Under Business Post coverage, the bank will also expand its venture into Ireland through a new digital asset unit set up in Dublin.
Dubbed the “Digital Innovation Center,” it will be regulated by the country’s central bank and, when launched, will act as a custodian for cryptocurrencies such as Bitcoin, immutable tokens (NFTs) and central bank digital currencies (CBDCs).
In other words, the institution will allow its customers to hold, transfer and issue digital assets.
BNY Mellon makes a tough crypto move despite warnings
BNY Mellon’s Irish initiative came at an intriguing time as central banks around the world have repeatedly warned of potential threats to cryptocurrency investments. Derville Rowland, a senior official at the Central Bank of Ireland, is among the high-profile figures who have recently joined the trend.
Rowland, quoted by Bloomberg, described crypto assets as a “highly speculative, unregulated investment.” Similar to the Governor of the Bank of England, he warned current and future investors of the possibility of losing all their money if they allocate any funds.
Rowland will take over the chair of the investment management standing committee of the European Securities and Markets Authority (ESMA) in July this year. ESMA is responsible for drafting regulations for the financial sector.