BNY Mellon to Offer Crypto ETF Custody Service
BNY Mellon is taking steps towards providing custody services for Bitcoin and Ether exclusively for its exchange-traded product (ETP) clients.
This development comes after a review by the Securities and Exchange Commission (SEC), with significant implications for how banks handle digital assets.
According to a report from Bloomberg on Tuesday, the SEC has reviewed BNY Mellon’s approach to crypto custody and did not object to the bank’s decision not to include crypto assets as liabilities on its balance sheet.
This review was especially significant because of the SEC’s SAB 121 rule, which requires banks to account for crypto assets they hold as both a liability and an asset on their balance sheets.
However, BNY Mellon’s unique case with ETPs appears to bypass this requirement, at least for the time being.
