BNY Mellon, or the Bank of New York Mellon, is a major American investment banking and financial services company. It was established in 2007 through the merger of the Bank of New York and Mellon Financial Corporation. BNY Mellon provides services like asset management, wealth management, and investment services to institutions, corporations, and high-net-worth individuals globally. As one of the largest custodial banks in the world, it manages trillions of dollars in assets and is known for its role in safeguarding and servicing investments.

The company has recently expanded into the cryptocurrency space, offering custodial services for digital assets like Bitcoin and Ethereum, reflecting the growing demand for crypto asset management among institutional clients. BNY Mellon’s move into this sector illustrates its ongoing efforts to innovate and adapt to new financial technologies and investment trends.

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BNY Mellon is advancing its cryptocurrency custody services, having received a notable exemption from the U.S. Securities and Exchange Commission (SEC). The exemption pertains specifically to the SEC’s Staff Accounting Bulletin (SAB) 121, which requires banks to account for digital assets as liabilities on their balance sheets. This ruling now allows BNY Mellon to provide custody services for Bitcoin and Ethereum to clients of exchange-traded products (ETPs) without this balance sheet impact. This move marks a significant development, as BNY Mellon becomes one of the first major banks to receive this type of SEC exemption, highlighting a growing acceptance of institutional crypto services  .

This development is part of a broader strategy by BNY Mellon to establish itself in the digital asset space, as they look to capitalize on the increasing demand for institutional-grade crypto custody solutions. By navigating regulatory requirements and expanding its services, BNY Mellon aims to cater to a burgeoning market of institutional investors seeking secure, regulated options for crypto assets. The bank’s ongoing regulatory engagements also suggest a potential for further expansion in its crypto offerings as the regulatory landscape evolves  .