BNY CEO Highlights Blockchain as Growth and Efficiency Tool

BNY Mellon Leverages Blockchain to Enhance Operational Efficiency and Support Stablecoin Custody Without Issuing Its Own Token

  • BNY Mellon sees blockchain as an operational and revenue opportunity, not a threat.
  • The bank supports stablecoin issuers by providing services rather than issuing stablecoins itself.
  • BNY Mellon manages $57.8 trillion in assets and offers crypto custody services.
  • The bank works with clients like Circle, SocGen FORGE, and Ripple on stablecoin custody.
  • It has partnered with Goldman Sachs to enable tokenization of money market funds.

During its third-quarter earnings call, BNY Mellon CEO Robin Vince discussed the bank’s strategy on digital assets and blockchain technology. Vince described blockchain as a tool that can improve operational efficiency and create new revenue opportunities. He also noted that the bank provides services to stablecoin issuers but does not plan to issue a stablecoin itself.

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The bank currently manages $57.8 trillion in assets and was the first U.S. globally systemically important bank authorized to offer crypto custody. In 2021, BNY Mellon invested in digital asset infrastructure company Fireblocks as part of its push into the digital asset space.

“We still have some of our ledgers which were quill and ink back in the day, then printing it, and then it was computers,” Vince told analysts. “And now we see this as a promise for certain types of assets and certain types of transactions as being a new way of being able to record, improving the mobility of assets, improving the efficiency of recording transactions.”

BNY Mellon serves as fund custodian and transfer agent for Circle’s USDC stablecoin reserve fund. It also provides custody services for SocGen FORGE’s dollar stablecoin and Ripple’s RLUSD token. Recently, the bank partnered with Goldman Sachs to support the tokenization of money market funds using blockchain technology.

Vince emphasized the advantage of blockchain enabling transactions 24/7 and increasing collateral mobility across markets. This approach aligns with BNY Mellon’s focus on using blockchain to enhance existing services and support new asset types within the financial system.

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More information about BNY Mellon can be found on their official website: BNY.

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