• BNY Mellon is expanding its focus on digital assets, while not focusing on cryptocurrency.
• The bank plans to integrate digital assets into all aspects of its business.
• This strategy involves distributed ledger technology, tokenization and digital cash.
BNY Mellon Focusing on Digital Assets
BNY Mellon is increasing its focus on digital assets and integrating them into all aspects of its business, according to Roman Regelman, CEO of Securities Services and Digital at BNY Mellon. However, the bank is not focusing on cryptocurrency as part of this strategy. Instead, the bank’s approach to digital assets involves distributed ledger technology, tokenization and digital cash.
Tokenization ‘Next Wave of Securitization’
Regelman noted that tokenization could be the next wave in securitization and could enable companies to capitalize on their illiquid assets more quickly than traditional methods allow for. He stated that it was important for BNY Mellon to be a leader in this space as investors are increasingly looking to take advantage of new opportunities with digital assets.
US Regulatory Apparatus ‚Against Bitcoin‘
Hedge fund billionaire Paul Tudor Jones recently said that the entire US regulatory apparatus appears to be against Bitcoin, which could make it difficult for institutional investors to enter the space. BlockFi has also announced that it will liquidate its lending platform due to bankruptcy concerns.
Lido Enables Staked Ethereum Withdrawals
Despite these challenges, some projects have seen success lately – such as Lido Networks rallying 12% after enabling staked Ethereum withdrawals. A recent survey also suggested that a debt default by the US government could make Bitcoin one of the top three asset classes worldwide in terms of market capitalisation within five years.‘