Amid growing demand from institutional clients for digital assets, Wall Street giant BNY Mellon is backing London-based crypto trading platform Pure Digital to provide trading and custodial solutions.
One of the U.S’s largest baking custodians State Street was the first to announce its support to the trading platform. BNY Mellon will be joining the consortium of six banks who are already in this project, reports Financial Times.
BNY is one of those popular conservative custodians safeguarding assets for some of the world’s largest asset managers. Now, these banks are seeing a growing interest from clients in trading and storing cryptocurrencies. Speaking to the publication, Pure Digital CEO Lauren Kiley said:
“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.”
The Wall Street bank is also keen on exploring “new digital asset servicing solutions” as the “regulatory landscape develops”. Jason Vitale, global head of foreign exchange at the US dealer 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”.
Betting on the Crypto Mania
Traditional banking institutions have always criticized crypto products and solutions. Custodial banks have been staying absolutely away from handling risky and volatile assets. However, the growing demand for digital assets among institutional players has forced them to join the game or be left behind.
Earlier in February 2021, the banking giant announced a new digital unit that will offer a Bitcoin custody solution. Later in June last month, the State street bank made a similar announcement. The latest partnership with Pure Digital shows that BNY Mellon seeks to expand its services by offering crypto trading.
Pure Digital co-founder Campbell Adams said that the first trade on the platform will happen “within a week”. This also makes Pure Digital the first crypto trading venue backed by traditional giants. All the banks in the consortium are also planning to create a cash crypto trading venue.