Banks & Crypto Custodians Work Closely to Introduce Custody for Digital Assets

The digital economy is described as the convergence of technology and finance that is increasingly defined by digital spaces, experiences, and transactions, according to Grayscale Investments‘ recent study Reimagining the Future of Finance. It’s not surprising that many financial institutions have begun to offer services that allow consumers to access Bitcoin (BTC) and other digital assets. Last year, in particular, witnessed an increase in the number of financial institutions offering support for crypto-asset custody. For instance, the Bank of New York Mellon, or BNY Mellon announced plans in February 2021 to hold, transfer, and issue Bitcoin and other cryptocurrencies on behalf of its clients as an asset manager. According to Michael Demissie, head of digital assets and advanced solutions at BNY Mellon, as of December 31, 2021, BNY Mellon has $46.7 trillion in assets under custody and/or administration and $2.4 trillion in assets under management. Taking a leaf out of BNY Mellon’s strategies, Banco Bilbao Vizcaya Argentaria (BBVA) announced in June 2021 that it will provide Bitcoin trading and custody services in Switzerland. Then, in October of last year, institutional investors were also in for the news. The U.S. Bank — the country’s fifth-largest retail bank- also announced establishing cryptocurrency custody services for institutional investors. Managing Director of Ninepoint Digital Asset Group, Alex Tapscott thinks tha...