Key Highlights:
- BNY Mellon is the first U.S. bank to custody crypto assets for Bitcoin and Ether ETP clients – without reflecting them as liabilities on its balance sheet.
- The SEC’s approval could open the floodgates for more banks to offer crypto custody services, potentially sparking a new era of institutional crypto adoption.
Paradisers, here is a FOMO alert! The SEC has officially given BNY Mellon the nod to custody crypto assets for its Bitcoin and Ether ETP clients without having to list them on its balance sheet. If you thought crypto was still the Wild West, then you may need to rethink. This move could be the start of a major institutional shift, and if you’re not in, you might just miss the next big wave.
BNY Mellon Breaks Ground as First Bank to Custody Crypto Assets
In a game-changing moment for the crypto world, BNY Mellon has become the first U.S. bank to receive SEC approval to custody crypto assets for its exchange-traded products (ETP) clients.
The best part? They don’t have to treat these digital assets as liabilities on their balance sheet, a major win given the controversial SAB 121 rule. While the SEC won’t repeal SAB 121 anytime soon, this special carve-out for BNY could open the door for more traditional banks to dip their toes into the crypto custody game.
And let’s not forget, BNY Mellon has been managing assets for over 200 years. They’re not exactly new to the game, just new to crypto. If they’re diving in, it’s time to start paying attention.
Why This Matters: Crypto Custody Goes Mainstream
With BNY Mellon leading the charge, more banks could soon follow. The SEC’s waiver for BNY sets a new precedent, but other asset managers like Fidelity may not be far behind. The controversial SAB 121 rule has kept many banks on the sidelines, but this breakthrough could change everything. If your bank isn’t preparing to custody your Bitcoin, you might want to ask why.
So, what’s next? With BNY Mellon paving the way, it’s only a matter of time before other banks jump on board. The crypto custody race is on, are you ready to secure your spot in the future of finance?
