BNY Mellon Sees Meaningful Revenue In Crypto by 2023 Post Clear Regulations

By Bhushan Akolkar
is-us-sec-favouring-bny-mellon-on-crypto-custody-hester-pierce-thinks-so

Bank of New York Mellon is optimistic about a meaningful revenue ticking from its crypto services. On Tuesday, January 18, the bank’s chief financial officer Emily Portney said that the bank is collaborating with Fireblocks, a unicorn FinTech that allows financial institutions to store crypto assets.

Portney said that the U.S. regulators should provide more clarity on the rules for the digital assets and said there’s a lot of confusion prevailing over what activities are allowed. In an interview with Reuters, Portney said:

“We’re hoping for more clarity around digital assets. Frankly, it’s a bit confusing about who actually regulates digital assets and especially crypto … and of course exactly what you can or cannot do”.

Portney’s comments show clear frustration regarding the government’s indecision pertaining to crypto assets. As the crypto ecosystem expands, traditional banking institutions have an interest in entering the crypto space. However, the banks are refraining from launching new products and expanding its existing offerings until the rules are clear.

BNY Mellon’s Sprint With Crypto

Banking giant BNY Mellon has been specializing in holding and servicing assets on behalf of clients. It has also been working on developing a custody and administration platform for digital assets.

Back in November 2021, the OCC said that banks need to get written permission before engaging in crypto-related activities. The OCC along with other regulators have engaged in a “policy sprint” to bring better crypto regulatory clarity for banks.

The effort is likely to bring new guidance and rules which shall be released as soon as this year in 2022. Portney added:

“A lot of the activity is happening in I guess what I would call the shadow banking system just because of the lack of clarity”.

We expect more regulatory clarity in crypto which can thus lead to higher institutional participation in the crypto space.

Advertisement
Bhushan Akolkar
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.