Tag: Bny Mellon

Circle Partners with Cross River Bank for USDC Production and Redemption

by Blockchain News

Circle, a leading global crypto finance company, has announced that it has partnered with Cross River Bank for producing and redeeming USD Coin (USDC), its flagship stablecoin pegged to the US dollar. Cross River Bank is a recognized leader in providing banking services to fintech and crypto firms, including Visa and Coinbase. In addition to Cross River Bank, Circle has also expanded relationships with other banking partners to assist with USDC redemption, including Bank of New York Mellon (BNY Mellon), which already provides custody services for Circle’s reserves.

The announcement comes after a harrowing weekend that saw Circle’s flagship USDC stablecoin break its peg to the dollar, falling below $0.90 early on Saturday. However, a series of moves by banks and regulators restored confidence in the token, and at the time of publication, USDC has recovered and trades at $0.99.

During the weekend, Circle issued a press release confirming that 100% of USDC reserves are safe and secure. The company also announced that it would complete the transfer of the remaining Silicon Valley Bank (SVB) cash to BNY Mellon, and liquidity operations for USDC will resume at banking open on Monday.

Circle’s announcement also noted that it had no exposure to Silvergate, the crypto-friendly bank that announced it would voluntarily liquidate its holdings as part of a takeover process by federal regulators. This weekend’s USDC turmoil was part of a broader financial catastrophe that started due to the collapse of SVB, the 16th-largest bank in the United States and a financial pillar of the tech and venture capital world. The failure of SVB triggered a panic as thousands of companies, including Circle, could not access billions in deposits. However, the Federal Reserve and other agencies calmed markets by announcing that depositors at SBV would be made whole.

Circle’s partnership with Cross River Bank and other banking partners is a significant step towards strengthening the stability and reliability of USDC, especially in the wake of recent events. Cross River Bank has a reputation for providing banking services to fintech and crypto firms and has been recognized for its services to Visa and Coinbase. BNY Mellon, on the other hand, already provides custody services for Circle’s reserves, making it a natural fit for assisting with USDC redemption.

Overall, Circle’s partnership with Cross River Bank and other banking partners underscores the importance of reliable banking partnerships for the stablecoin industry, which is still in its nascent stages. As the industry grows and matures, more partnerships like these are likely to emerge, providing greater stability and reliability for stablecoins like USDC.

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BNY Mellon Launches Crypto Custody Service – Report

by Blockchain News

Bank of New York (BNY) Mellon has announced that its digital assets custody service is now live as it seeks to deepen its foothold in the emerging cryptocurrency ecosystem. 

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Ranked amongst the oldest and most capitalized banks in the United States, BNY Mellon said the digital assets custody solution will aid its role as a major bridge between the emerging crypto world and the broader traditional financial ecosystem.  

“Touching more than 20% of the world’s investable assets, BNY Mellon has the scale to reimagine financial markets through blockchain technology and digital assets,” said Robin Vince, Chief Executive Officer and President at BNY Mellon. “We are excited to help drive the financial industry forward as we begin the next chapter in our innovation journey.”

The bank said it launched the crypto custody service by integrating the technologies of both Fireblocks and Chainalysis, noting that these firms will help it maintain the adequate security and compliance necessary to stay relevant in the highly competitive industry now and in the future. 

Arguably, BNY Mellon is positioning itself for a future that digital currencies may soon dominate. The banking giant said it commissioned a survey in which 91% of respondents who are institutional investors said they would be interested in injecting funds into tokenized products. As many as 41% of these respondents are currently holding crypto on their balance sheet, and 15% plan to acquire these assets in the near future.

With this realization, the bank said it is looking to float new products and solutions that can help it converge the needs of its traditional clients as well as those who consider crypto to be the future.

“As the world’s largest custodian, BNY Mellon is the natural provider to create a safe and secure Digital Asset Custody Platform for institutional clients,” said Caroline Butler, CEO of Custody Services at BNY Mellon. “We will continue to innovate, embrace new technology and work closely with clients to address their evolving needs.”

Besides BNY Mellon, Morgan Stanley, Goldman Sachs, and JPMorgan, amongst others, are also heavily invested in the space with their own tailored products and services hitting the market.

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Circle Taps BNY Mellon to Serve as Custodian for USDC Stablecoin Reserves

by Blockchain News

The Bank of New York Mellon Corporation, popularly known as BNY Mellon, has been selected to serve as the “primary custodian” for the reserve assets behind the USDC stablecoin, a cryptocurrency whose value is directly pegged to the U.S. dollar. Circle, a global crypto finance company, announced in a statement on Thursday.

The new partnership will assist in linking the traditional capital market with the digital asset market, Circle stated.

According to the report, both parties will collaborate to facilitate an exchange of expertise on issues regarding digital and traditional markets. Such issues include bridging traditional and digital capital markets, cash management for fiat and non-fiat payments, safekeeping of digital assets, investment management, and the exploration of digital cash for settlement purposes.

Roman Regelman, the Asset Servicing CEO and Head of Digital at BNY Mellon, talked about the development and said: “Our role as custodian of USDC reserves supports the broader market and provides value to clients, based on our role at the intersection of trust and innovation.”

Meanwhile, Jeremy Allaire, the co-Founder, Chairman and CEO of Circle, also commented on the new collaboration and stated that the partnership with BNY will enable their firm to “build bridges between traditional financial services and emerging digital asset markets, without sacrificing trust.”

By selecting the biggest custodian bank, Circle gets credibility, builds trust in its stablecoin brand, and positions its flagship product as a quality stablecoin. Likewise, partnership with the USDC stablecoin also gives BNY bank significant credibility and bolsters its brand among crypto clients.

Mellon bank is the world’s largest conventional custodian, with over $46 trillion in assets under custody. USDC is the second-largest stablecoin with almost a $52 billion market cap.

Expanding Access to Digital Assets to Institutions

In February, BNY Mellon announced developing a digital asset custody platform to allow institutional customers to gain crypto exposure. With the creation of the digital asset custody platform, the bank aims to enable institutions to store cryptocurrencies in BNY Mellon crypto wallets.

Mellon stated that the new digital asset custody service would gradually increase and integrate a variety of tokenized traditional and digital assets.

The new service has made the bank become the first to enter the global digital custody market, with intentions to expand worldwide based on demand, beginning with the U.S.

In the U.S., Mellon bank is the oldest banking organization founded at the end of the 18th century and is still running its business to date.

In early 2021, Mellon first entered into the crypto space when it announced its plans to begin financing Bitcoin and other digital currencies to its institutional clients, citing increased demand. Since then, the bank has expanded its crypto-related activities. In July last year, Grayscale Investments selected BNY Mellon as an asset servicing provider for Grayscale Bitcoin Trust.

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BNY Mellon, Others, Join Forces to Launch Pure Digital Crypto Exchange

by Btcmanager

Bank of New York Mellon has joined a consortium of six heavyweight lenders launching a new bitcoin (BTC) trading venue and crypto exchange. If all goes as planned, Pure Digital exchange will make history as the first-ever crypto exchange to be entirely controlled by traditional banks, according to a Financial Times report on July 20, 2021.

More Wall Street Money Coming to Bitcoin 

Despite losing almost the entire gains it has made so far in 2021, partly due to serious FUD from China, it appears this may just be the very beginning of institutional demand for bitcoin (BTC) if the latest reports are anything to go by. 

Per sources close to the latest development, Bank of New York Mellon, a 237-year-old American bank with $1.9 trillion (2020) in assets under management, is joining forces with State Street, and four other unnamed lenders to back a new cryptocurrency exchange.

Dubbed Pure Digital, the exchange has hinted that it plans to execute its first bitcoin trade within a week and if all goes smoothly, its name will enter the history books as the first cryptocurrency trading venue entirely run by banks.

Campbell Adams, Pure Digital co-founder has stated categorically that he firmly believes that the global cryptocurrency market can not scale without banks and, as such, he feels the exchange’s collaboration with banks is a move in the right direction.

In his words:

“We are not worried about aligning ourselves with banks. The crypto market needs banks, and I don’t think it can scale without them.”

Bitcoin’s Mainstream Adoption Getting Closer 

While a vast array of traditional financial institutions are still standing on the fence in terms of cryptocurrency adoption, some brave lenders more open to innovation have started making inroads into the cryptospace.

As reported by BTCManager earlier in February 2021, BNY Mellon announced plans to roll out a cryptocurrency custodial service in order to meet clients’ demands. However, with BNY Mellon now heavily involved with Pure Digital, it remains unclear whether America’s oldest bank will still go ahead with its previous plans.

State Street, on the other hand, announced the launch of its dedicated cryptocurrency division in June 2021. At the time, the bank made it clear that it has a major role to play in the evolution of crypto and the new digital asset arm will effectively carry out the task.

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BNY Mellon Adds to Crypto Activity with Pure Digital Bet

by Cryptobriefing

Key Takeaways

  • BNY Mellon is investing in crypto trading platform Pure Digital, along with five other banks.

  • Pure Digital is aiming to compete with Coinbase and FTX for institutional clients.

  • The move suggests BNY Mellon is seeing more institutional demand for cryptocurrencies.




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America’s oldest bank furthers its involvement with cryptocurrencies. 

BNY Mellon Backs Pure Digital 

The Bank of New York Mellon has joined five other banks in backing the institutional Bitcoin trading platform Pure Digital. 

The 237-year-old institution announced its plans to add the institutional Bitcoin exchange Pure Digital to its list of crypto-based ventures Wednesday. BNY Mellon will join five other banks who are already backing the platform, including fellow custody bank State Street. 

As reported by the Financial Times, BNY Mellon will provide public backing for Pure Digital. It also intends to trade on the platform. The report outlines how BNY Mellon, State Street, and the other unnamed backers aim to create a cash cryptocurrency trading venue to compete against larger industry players such as FTX and Coinbase. It’s set to become the first cryptocurrency trading platform led by banks. According to Pure Digital co-founder Campbell Adams, the first Bitcoin trade is scheduled to take place on the new exchange within a week. 


Commenting on the Pure Digital partnership, Jason Vitale, global head of foreign exchange at BNY Mellon, said:

“Digital assets are only going to become more embedded in global markets in the years ahead, and this collaboration accords with BNY Mellon’s wider strategy to develop a digital asset capability for clients across the entire trade life cycle.” 

BNY Mellon first started offering crypto custody services to its clients back in February, citing an increase in institutional interest. Since then, the bank has announced it will provide custody and management services for several high-profile clients, including Grayscale Investment’s illustrious Bitcoin trust. 

Pure Digital CEO Lauren Kiley also commented on custody banks and crypto adoption. She stated that while Pure Digital had spoken to many top-tier banks, custody banks were more advanced as they were the first to see demand for crypto-related services. 

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In addition to providing crypto custody services for institutional clients, BNY Mellon has also actively invested in major players in the crypto industry. In March, the bank helped finance the crypto management firm Fireblocks with a $133 million investment. 

As BNY Mellon increases its presence in the crypto industry through ventures like Pure Digital, the bank seems set on attracting institutional interest from traditional financial markets. While crypto markets have retreated from their highs earlier this year, institutional involvement with cryptocurrencies is showing no signs of slowing.

Disclaimer: At the time of writing, the author of this feature owned BTC and ETH.

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BNY Mellon joins State Street to service new crypto exchange

by Cointelegraph

Bank of New York Mellon is joining a new cryptocurrency initiative by offering its custody support to a new crypto exchange backed by the American bank State Street.

According to a Wednesday report by the Financial Times, BNY Mellon has joined a consortium of six banks behind the launch of London-based Pure Digital, a new crypto trading platform venture that is scheduled to execute its first Bitcoin (BTC) trade in the near future.

The upcoming crypto venture came under the industry’s spotlight in April, with State Street announcing plans to provide its trading infrastructure to Pure Digital exchange through its foreign exchange technology subsidiary Currenex. The institutional-grade platform is expected to be a fully automated over-the-counter market for cryptocurrencies, featuring physical delivery and bank custody.

According to the report, BNY Mellon and State Street, alongside other unnamed banks behind Pure Digital, will create a cash cryptocurrency trading venue in a bid to compete against larger industry players. “We have spoken to all the top-tier banks but we think custody banks were some of the first to see demand, so they are now more advanced,” Pure Digital CEO Lauren Kiley said.

Pure Digital co-founder Campbell Adams reportedly noted that the firm expects to roll out trading “within a week,” with the first trade tentatively involving a Bitcoin trade. The exec also said that Pure Digital is not worried about collaborating with banking institutions, expressing confidence that the bank’s contribution is important for the industry’s adoption. “The crypto market needs banks, I don’t think it can scale without them,” he stated.

Related: Goldman Sachs’ crypto trading desk expands to Ether

The latest news marks another milestone for cryptocurrency adoption by financial institutions in the United States, with both BNY Mellon and State Street becoming increasingly engaged in the industry. After announcing crypto custody plans in February, BNY Mellon continued moving into crypto, last week becoming an exchange-traded fund service provider for major crypto asset manager Grayscale Investments.

State Street is known for its digital currency collaboration with Winklevoss’ Bitcoin exchange Gemini. Last month, the bank launched a dedicated digital finance division focusing on cryptocurrency, blockchain technology and central bank digital currencies.