US banking giant BNY Mellon exec says digital assets ‘here to stay’
Michael Demissi, head of digital assets at Bank of New York Mellon (BNY Mellon), is adamant that the crypto market crash in 2022 will not shake institutional interest in digital assets.
At a conference hosted by Afore Consulting, Demissi said on Feb. 8 that the digital asset industry is “here to stay” as institutional investors show a lot of interest in cryptocurrencies.
“We see that clients in general are absolutely interested in digital assets,” he said. according to in a Reuters report on February 8.
Demissy reinforced his thoughts with a reference to survey conducted by BNY Mellon in October showed that 91% of custodian bank customers are interested in investing in blockchain-based tokenized products.
The survey also showed that 86% of institutional players use a buy and hold strategy, which may indicate that they view the cryptocurrency market as a long-term game.
Of those surveyed, 88% also said that the severe downturn in the cryptocurrency market in 2022 has not changed their plans to invest in the digital asset sector in the long term.
The adoption rate of cryptocurrencies and digital assets is still rising despite the recent crypto winter, Mikhail Shaulov of Fireblock told Aerial View. Visit https://t.co/vELI6pZUDy #bites from the air #cutthroughthecorporate #sebos #bird’s-eye #digital assets @bnymellonAV pic.twitter.com/Po4bgEpJn9
— BNY Mellon (@BNY Mellon) October 28, 2022
However, DeMissy said more work needs to be done in Washington, D.C. so that industry players can move forward with greater regulatory clarity.
“We absolutely need clear rules and regulations of the road. We need responsible participants who can offer reliable services that justify the trust of investors.”
“It is important that we approach this space responsibly,” he added.
On February 2, BNY Mellon announced the appointment of Caroline Butler as CEO of the digital asset company to help drive the next wave of adoption for the bank’s customers. Previously, she was the general director of child welfare services.
Caroline Butler, CEO of Digital Assets, to Lead Global Acceleration Effort @BNYMelloncommercial digital asset initiatives. https://t.co/tYbuJzrAZt pic.twitter.com/OacBbHO1xZ
— BNY Mellon (@BNY Mellon) February 2, 2023
The appointment comes after BNY Mellon launched its own digital custodial platform in October, offering select institutional clients the opportunity to invest in Bitcoin (BTC) and Ether (ETH).
Previously, in February 2022, BNY Mellon announced a partnership with network metrics platform Chainalysis to help track and analyze cryptocurrency products.
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BNY Mellon isn’t the only major bank to make moves in the digital asset industry of late.
Goldman Sach reportedly expressed interest in buying crypto firms after several were hit by the disastrous FTX crash in November.
Although JPMorgan CEO Jamie Dimon is not a bitcoin fan, his firm has been dabbling in blockchain-based services lately. In November, the firm successfully completed its first cross-border transaction using decentralized finance on a public blockchain.
Credit : cointelegraph.com