BNY Mellon Speculated to Enlist Fireblocks Platform for BTC Custody Services

Corporate banking company BNY Mellon revealed it is working with a different entity for its digital asset custody services, although it did not specify any group.

Fireblocks Rumor

However, according to Coindesk, the investment giants are working with Fireblocks in holding cryptos in their client’s capacity. BNY and Fireblocks have both dodged the query on whether the claims are valid.

BNY Mellon’s Digital Market Involvement

This month, the New York-based bank made public its plan to offer digital asset custody services to the public. The move came about after Elon Musk’s company, Tesla, invested in about $1.5 billion worth of BTC. Wall Street players are slowly dipping themselves in the bitcoin prospect, as Tesla’s activities have sparked an urgency for institutional investment in cryptocurrency.

The head executive at the bank, Mike Demissie, recently shed light on why BNY Mellon is venturing into crypto services. He said that the call for crypto custody services from its customers is becoming too big to turn a blind eye. He added, “We are also seeing new demand from prospective clients, particularly digital-native companies in the digital asset space, who are looking for BNY Mellon’s core investment services.”

BNY Mellon manages approximately $40T in assets. However, the bank’s digital market prowess was not a factor in play. Following the custody services announcement, BNY Mellon said it is working with an unidentified custody platform. Nonetheless, one anonymous source claims that Fireblocks has been working with the banking company ‘for a long time.’

The Road to Crypto-Banking

BNY Mellon Bank’s long-term partnership with crypto startup platform Bakkt proves that the investment institution was on its way to offering crypto custody services long ahead. According to Executive Mike Demissie, there could be enough regulatory incentives for banking companies to store cryptocurrency for their clients.

In January, the U.S. OCC gave banks the green light to include holding stablecoin services to their offerings. The allowance has made some banking giants like JP Morgan assess their capabilities in providing crypto services. 

Fidelity Investments, one of the first traditional financial entities to employ crypto custody services, went even a step further by allowing clients to take loans with BTC as collateral.

Seemingly, big institutions are moving in to take their space in the crypto-verse to boost their offerings and expand their client base.

Since financial regulators are still hesitant to allow banks to adopt the full decentralization properties for using cryptocurrency, they resort to custody platforms such as Fireblocks.

Nevertheless, whether digital asset custody service platforms are secure is somewhat of a delicate matter for banks worldwide.

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An Island Surf Resort in the Pacific is Now Accepting Payment in Bitcoin

Beran Island Resort, which is at the heart of the Marshall Islands, recently announced it is ready to accept BTC in settlements. 

Crypto Adoption in the RMI

The resort is advertising one of their packages dubbed ‘a trip to the middle of nowhere,’ where 15 friends can rent out the island to do exciting activities like fishing, surfing, and scuba diving, all for 1 BTC. According to the escape’s stakeholders, the move will target the tech-oriented younger generation.

The Beran Island Resort, the highly acclaimed getaway, introduced BTC payment following the law that Marshall Island financial authorities passed in 2018.

The Sovereign Currency Act enactment could enable citizens of the island to reduce the reliance on USD as a currency. The Republic of Marshall Islands (RMI) decided it was in the region’s best interest to create a crypto legal tender. The Act initiated the creation of the region’s cryptocurrency named SOV.

Nonetheless, the International Monetary Fund warned the RMI against the SOV crypto launch, citing regulation inadequacy reasons. Additionally, the IMF stated that the Initial Coin Offering would be low, contrary to the region’s financial office expectations. 

BTC as a Form of Payment

The private island resort is one of several institutions to accept payment in BTC, following PrivateFly and Microsoft’s footsteps. Many people are concerned about making an eco-friendly choice of hiring a luxury eco- spa or resort, questioning how to get the best out of eco-spa. The resort now makes it all look effortless and is always coming up with new solutions to old problems, including current technologies like the use of BTC.

The demand for digital currency settlement services has increased the number of hotels accepting crypto payments. Places like the Beran Resort have opened the door to a brand new world for the savvy entrepreneur who sees crypto as the future.

Luxurious recreational places such as the Dolder Grand Hotel, located in Zurich, started accepting BTC payments three years ago. Similarly, the Canadian Sandman Hotel Group uses the Coinbase exchange to facilitate cryptocurrency transactions.

Bitcoin No Longer an ‘Alternative’?

The financial world is slowly incorporating the use of BTC as a reliable asset that can pay for day-to-day services. One can travel, eat, sleep and even live while paying for all the activities using the world’s most famous crypto. However, not many institutions are open to accepting dues in bitcoin. 

MasterCard recently revealed it is open to incorporating private and country-backed stablecoins but not decentralized non-asset backed coins like BTC. Whether we are on the road to a fully decentralized financial system or exclusively utilizing stablecoins, BTC will indeed be involved.

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