World’s Largest Custodian Bank Backs Digital Asset Custody FinTech
19 Mar 2021 — BNY Mellon has increased its focus and involvement in the provision of digital assets solutions with its latest investment in cryptocurrency custodian Fireblocks. The strategic investment was part of a $133 million Series C venture capital fundraise led by hedge fund Coatue Management, investment firm Ribbit Capital, growth equity firm Stripes and SVB Capital.
This announcement came only after 3 weeks of the bank’s launch of a dedicated business unit for digital assets, which is scheduled to begin servicing clients later this year.
BNY Mellon, which has more than $41 trillion in assets under custody worldwide has claimed to be the first global bank to offer an integrated service for custody, administration, and trading of digital assets.
According to Benzinga, the strategic investment in the up-and-coming cryptocurrency custodian may be part of the bank’s plans to offer the country’s first multi-asset digital custody platform to service both traditional assets and digital assets.
The bank first made its foray into the crypto market in April 2019 through its collaboration with digital currency exchange Bakkt to help it launch a custody service.