The prominent institution in the US, Bank of New York Mellon Corp (NYSE:BK) will introduce cryptocurrency services for supporting Crypto financing and Bitcoin.
The oldest US bank is making plans to jump into the crypto space for two years according to a 2019 blog post. It explored the challenges in offering custodial services and maintaining the digital assets safely in 2019.
Cryptocurrencies can access the same financial network
The decision of Mellon Corp decoded to support digital services, cryptocurrencies can now access the same networks being used by the traditional banks that hold equities and treasury bonds. Roman Regelman, CEO (head of digital and asset servicing) of Mellon Corp praised the bank’s decision to provide crypto custodial services.
First bank to offer integrated service
Mellon Corp is the global first institution in the US to offer integrated services to support digital assets. It is on the backdrop of the improved need for digital assets from the client base worldwide. The company considered jumping on the bandwagon because of clarity in regularity conditions and advanced solutions. Regelman said the bank plans to introduce its crypto custodial services in 2021.
Financial institutions consider the cryptocurrency sector as a major field to act. Paypal introduced a facility the US customers to sell, buy, or hold cryptocurrencies on its platform a few months ago. It is a catalyst for players like Visa and Mastercard to enter the crypto space.
Tesla invests $1.5 billion
After investing a sum of $1.5 billion in Bitcoin, Tesla announced plans to accept payments in cryptocurrency for its electric vehicles. Following the investment by Tesla, the price of Bitcoin hit an all-time high of more than $48,000 in under 24 hours from $39,400.
The price of Bitcoin has surged by over 50% in January and the first two weeks of February 2021. Several companies already invested significant amounts in Cryptocurrency. Tesla would also invest in other digital assets and hold for the long term.
With investments in digital assets, the EV producer gets the flexibility to diversify and improve returns on cash. However, Bitcoin is highly volatile and dropped lower than $4000 in March 2020. After touching an all-time high, Bitcoin declined by 30% in 2021.