- February 9, 2023
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
According to the banking and payments forecasts of GlobalData research for 2023, prominent banks will continue to integrate crypto and digital assets into their offerings despite the ongoing bearish market mood.
Michael Demissie, the head of digital assets at Bank of New York Mellon (BNY Mellon), is convinced that institutional interest in digital assets will not be dampened by the slowdown in the cryptocurrency market last year.
Investors’ Love For Crypto
Demissie said in quotes by Reuters.
“What we see is clients are absolutely interested in digital assets, broadly”
The BNY Mellon digital assets chief spoke on a panel on cryptocurrency during the recent Afore Consulting’s 7th Annual FinTech and Regulation Conference.
During the fintech conference, Demissie referenced a research carried out by the world’s largest custodian bank last year, which found 91% – or more than $1 trillion in assets under management – of its institutional clients were interested in including tokenized products in their portfolios.
Robert Vince, the CEO of BNY Mellon, once remarked that ignoring cryptocurrencies would be like dismissing the invention of the computer. The fact that this viewpoint comes from one of the world’s oldest institutions makes it all the more significant.
‘Buy And Hold’
BNY Mellon’s 2022 assessment also revealed that 86% of institutional players are following a “buy-and-hold” approach, which may indicate that they view the cryptocurrency market as a long-term investment opportunity.
In 2022, cryptocurrency markets plummeted as increased interest rates and a slew of high-profile crypto business failures left investors apprehensive.
Demissie emphasized the importance of additional industry regulation, as reported by Reuters, in an effort to encourage dependable service provision that would boost investor trust.
He said:
“It’s important that we navigate this space in a responsible way.”
BNY Mellon is one of the established banks that has no qualms about dabbling in digital currency assets. In 2022, the bank received authorization from New York’s banking regulators to accept Bitcoin and Ether deposits from chosen customers.
Major Partnerships
In its efforts to offer crypto custody services, the bank is also collaborating with American blockchain analysis firm Chainalysis and digital asset custody, transfer, and settlement provider Fireblocks.
Stephen Richardson, head of financial markets business at Fireblocks, asserts that banks have already begun integrating digital asset infrastructures into their offerings, despite the ongoing bear market.
This year, both the New York-headquartered BNY Mellon and JPMorgan are anticipated to create additional blockchain-related services.
According to the analysis by GlobalData, platforms like this would enable institutional investors to purchase cryptocurrencies like Bitcoin and Ethereum through reputable institutions.
Meanwhile, BNY Mellon recently announced it was letting go of approximately 1,500 employees this year, or roughly 3% of the bank’s workforce.
According to reports, the bank incurred $548 million in expenses during the fourth quarter. BNY recorded $213 million in Q4 charges related to costs, including severance and lawsuit reserves, it was reported.
-Featured image form Pensions & Investments
