BNY Mellon is set to enter the crypto custody market for Bitcoin and Ethereum ETFs after securing an exemption from the SEC, as reported by Bloomberg News on Sept. 24.
BNY Mellon’s exemption from SEC’s Staff Accounting Bulletin 121 (SAB 121) allows them to classify customer crypto holdings differently, enabling traditional banks to offer crypto custody services.
This move positions BNY Mellon to challenge Coinbase’s dominance in crypto asset management.
Disruption
BNY Mellon’s entry into custodial services for Bitcoin and Ether ETFs could disrupt the market landscape currently dominated by Coinbase.
BNY Mellon’s interest in the crypto custody sector dates back to early 2023, highlighting the firm’s strategic vision for digital assets.
Analysts estimate the crypto custody market could surpass $1 billion by 2032.
Regulatory hurdles
Regulatory challenges remain a concern for BNY Mellon as they navigate the crypto custody space, with transparency issues raised by lawmakers.
BNY Mellon’s success hinges on regulatory compliance and meeting the demand for digital asset services.
