BNY Mellon, the oldest U.S. bank, is entering the crypto-custody market, offering services for bitcoin and ether ETFs to clients like BlackRock and Franklin Templeton. This move could challenge Coinbase’s dominance in digital asset custody, as institutional interest in crypto grows.
The SEC granted BNY Mellon a "no-objection" ruling, allowing the bank to safeguard crypto assets without listing them as balance sheet liabilities, easing regulatory hurdles. The bank's custody model, focused on individual wallets, could extend beyond bitcoin and ether, opening the door for other banks to follow suit and expand crypto offerings.