BNY Mellon follows suit by introducing Bitcoin custodial services
An amazing week for Bitcoin has become even better as America’s oldest bank, BNY Mellon, jumps on board the crypto bandwagon. According to the Wall Street Journal, The U.S. investment bank said it would hold, transfer, and issue Bitcoin and other cryptocurrencies for its clients.
Recently, it seems as though a flood of companies is getting on board with cryptocurrency. Tesla’s $1.5bn Bitcoin buy is perhaps the most significant coup to date.
But a whole new dynamic comes into play with BNY Mellon joining in. Generally, banks have been the most prominent skeptics of cryptocurrency. Why? Because cryptocurrency is a threat to their operations.
Demetrios Zamboglou, the COO at forex brokers CFI Financial Group, said blockchain technology is fast turning the world of finance upside down. This presents a frightening prospect to firms that have had it good for so long.
But as Bitcoin continues on its journey upwards, the naysayers are gradually becoming quieter. More importantly, the heightened demand for cryptocurrency has previously skeptical bankers reconsidering their position.
Roman Regelman, the Chief Executive of Asset-Servicing and Digital Businesses at BNY Mellon, admitted things are changing.
Regelman’s message rings true for payments giant Mastercard, who, like rival firm Visa, voiced their doubts about cryptocurrency in the past.
In 2018, Mastercard CEO Ajay Banga called cryptocurrency junk. He added that a wildly fluctuating value does not fit the description of a store of value. Nonetheless, over time, Mastercard did begin to soften its stance towards cryptocurrency.
Yesterday it announced it would support “select” cryptocurrencies directly on its network. The firm says its approach is to offer customers the choice to use it if they wish.
Acceptance of Bitcoin from institutional players of the caliber of BNY Mellon, Mastercard, and Tesla would no doubt entice others to follow.