BNY Mellon, the oldest bank in the USA, announced that it entered the Bitcoin and cryptocurrency arena by creating a “Digital Assets Unit”. The New York-based bank is a custodian with assets of more than $ 41 trillion and has $ 2 trillion in assets under management. The Wall Street Journal reported that the bank will issue, hold and transfer Bitcoin on behalf of asset management customers with this move.

 

 

USA’s oldest bank in the cryptocurrency industry

According to the announcement, the Digital Assets Unit is led by Mike Demissie, who says it “plans to provide a secure infrastructure for transferring, storing and publishing digital assets”.

BNY Mellon, America’s oldest bank, is deeply connected to the global financial system. This makes the announcement incredibly bullish, as an established institution entering the market basically humiliates Bitcoin for many others and suggests that stifling regulations from the US government are unlikely.

Jonathan Leader, professional finance trader, told Bitcoin Magazine:

“The risk of regulation is now gone. If the government had planned to harshly intervene in BTC, BNY would not be involved. I’m sure there will be more regulations, but now the ban is off the table. ”

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This move indicates that institutions are definitely entering the Bitcoin space, and somehow it will accelerate adoption.

 

The attack of institutions continues

For example, the feasibility for a large hedge fund to interact with Bitcoin has increased significantly. All assets of this fund could be under the auspices of BNY Mellon, and before this move, it would have to set up an exploratory committee and sell decision makers to open accounts on cryptocurrency exchanges like Coinbase or Gemini. This would be a tough sell. Now, this custody is offered by BNY Mellon and it will be much easier to transact with Bitcoin.

It is too early to say what will happen on the US regulatory front, but moves like these are a reason for Bitcoin advocates to celebrate. We now have one more reason to hope that regulators will continue to work with the market on friendly and sensible regulations going forward.

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