BNY Mellon, one of the most famous financial institutions in the world, which represents a traditional Wall Street institution, became the first bank in the world to allow its customers to store, transfer and issue digital currencies.
Although this decision was not without internal opposition, it marks a milestone in the development of cryptocurrency, since it is now largely part of shaping the future of financial services, and does not oppose it, as many banks did many years ago. This was seen as an attack on the control of the global financial system, which was supposed to be held by banks, and the democratization of the world of finance in the hands of the public, which will be able to control their own destinies.
Insight Investments, one of BNY Mellon’s asset management partners, demonstrated concern about the suitability of Bitcoin for institutional investors, highlighting the low level of liquidity, management problems and, believe it or not, ESG risks, which we have all heard about before from Elon Musk. It was this infamous tweet concerning the use of electricity in Bitcoin mining that allegedly caused the prices of the five most popular cryptocurrencies to fall by $ 700 billion.
Nevertheless, the world’s largest custodian bank has been actively offering cryptocurrency storage services since February of this year, and has since expanded its scope of activity to provide services related to all aspects of cryptocurrency banking.
Internal contradictions of traditional banking
The internal tug of war between the defenders of the BNY Mellon cryptocurrency and investment managers who represent the old guard reflects the traditional way of thinking compared to those who are going to use financial services in the future. However, despite the intention of Insight Investments to adhere to the traditional methodology, the head of the currency trading company said that Insight believes that more and more cryptocurrencies will continue to be issued that will try to compete with the MTC. This will show that even those who prefer not to trade cryptocurrencies, being affiliated with the world’s first cryptocurrency-friendly Wall Street bank, realize that this is an integral part of the future of finance.
It is quite obvious that cryptocurrency is the most influential and empowering asset class on the planet. With a properly designed structure, such as a regulated exchange that has an EMI license, as well as a cryptocurrency exchange license, so that it can act as a digital bank, along with a full set of trading and custodial services, cryptocurrency becomes the lifeblood of global financial markets, as well as an empowerment tool for hundreds of millions of people around the world.
Being a client of a cryptocurrency organization that is regulated as an exchange and that also has an EMI license for electronic payments is a sustainable and profitable way to participate in this clear direction of progress.