BNY Mellon will integrate digital assets into every business unit

In the next year and a half, all divisions of the BNY Mellon financial holding will expand their product line for digital assets. This was stated in an interview with American Banker by the CEO of the organization, Roman Regelman.

According to the top manager, the development of digital assets is a continuation of the digitalization strategy. The goal is to digitize every product and customer interaction.

The company began to develop the direction two years ago against the backdrop of increased demand. Adoption is “exceptionally slow” because BNY Mellon looks at innovation in terms of risk management rather than capital investment.

Regelman noted three vectors for the development of digital assets:

• their inclusion in all company products;
• using blockchain to modernize existing infrastructure;
• development of new use cases.

Regelman drew attention to the potential of tokenization, in which he sees the next wave of securitization – with greater accessibility, simplicity and in digital form. Assets in the new format could become “more accurate and secure,” he added.

“We believe in the power of this technology. We believe that innovation can offer new use cases as well as faster and cheaper access to capital markets. But we do not think that this is related to cryptocurrencies. […] Digital assets – much more [категория]. Our horizon is long-term, – said the CEO of BNY Mellon.

Regelman found it difficult to give an exact answer to the question of the implementation of the strategy, indicating a range of 5-20 years.

“When we talk about asset classes, we would be exactly the same talking about stocks, fixed income assets, and digital assets in the same sentence. This is how people are going to use the blockchain. It will be normal, he assured.

Recall that in February 2021, BNY Mellon was one of the first among large financial institutions to create a custody platform for digital assets.

A year later, the organization entered into a partnership with Chainalysis, an analytics company, as part of a risk management program.

In October 2022, BNY Mellon was approved NYDFS to launch a crypto-custodial service.

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