by Commercial banks continue to delve into the cryptocurrency space as the oldest bank in the US takes steps to offer crypto services to its users while also monitoring their Bitcoin transactions.
BNY Mellon, the largest global commercial bank, is planning to incorporate Chainalysis, a blockchain analytics system, to aid in the monitoring and analysis of digital assets. The initiative is part of the bank’s plan to offer digital services to its customers.
BNY Mellon Takes a Bold Step
As stated in the financial institution’s publication, the New York-based organization seeks to incorporate the whole Chainalysis software system into its virtual assets storage and management platform.
This integration will assist its customers in evaluating crypto patterns and activities in accordance with its regulation. In summary, BNY Bank wants to keep a record of the digital assets in its custody that are available to customers.
Uses Of Chainalysis Software
The integration company has software, Know Your Transaction (KYT), that performs risk analysis continuously. Also, it detects “high-risk” activities by monitoring present and past transactions for all digital assets.
Also, the company has an investigation tool, Reactor, which allows businesses to make a more thorough inquiry on dubious activities. Kryptos, developed by Chainalysis, is a reference database where crypto operations are recorded. The program is made to help financial organizations better comprehend the risks and investment possibilities available with virtual assets. Virtual assets are known to be volatile depending on the situation of the market. Several nations use this point as justification for regulating digital assets.
The company’s co-founder, Jonathan Levin, emphasized the importance of financial institutions in the crypto sector’s development, saying, “we are happy to partner with the prestigious bank on their virtual currency business.”
BNY Mellon And Cryptocurrency
BNY Mellon entered the BTC market last year after pledging support for digital currencies due to the digital assets owned by its customers. The bank also collaborated with Grayscale, the largest assets manager globally, to turn its Bitcoin Trust into an ETF.
In the latest interview, the CEO of the bank, Emily Portney, forecasted that BTC and altcoins could add to the bank’s income in 2023. She noted that regulatory agencies throughout the world should bring clarity to the crypto arena, which she believes would serve as a building block for the bank.
Several countries included banks as the only licensed financial institution that can offer crypto services to their citizens as part of their crypto regulatory practices.
