The oldest bank in the U.S., the Bank of New York Mellon (NYSE:BK) launched its Digital Asset Custody platform yesterday. Through the platform, some of the bank’s U.S. clients will be able to hold and transfer cryptocurrencies like Bitcoin (BTC-USD) and Ethereum (ETH-USD).
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This is a milestone moment for the banking industry. The BNY bank will be the first bank to store the clients’ private keys needed to operate and transfer the cryptocurrency. The bank will also offer bookkeeping services on their BTC and ETH holdings, similar to services offered to institutional clients for their portfolios of various commodities.
The launch is a result of months of efforts by BNY to develop a platform for digital asset technology. In 2021, the Digital Assets Unit was formed for the cause, and the bank collaborated with market-leading fintech and digital asset technology specialists like Fireblocks and Chainalysis.
BNY Mellon CEO Robin Vince commented, “Touching more than 20% of the world’s investable assets, BNY Mellon has the scale to reimagine financial markets through blockchain technology and digital assets.”
The company’s management highlighted the results of a recent survey, wherein “all institutional investors (91%) are interested in investing in tokenized products,” with 41% already holding cryptocurrency in their portfolio. Further, an incremental 15% plan to hold digital assets in their portfolios within the next two to five years.
Is Bank of New York Mellon Stock a Buy, Sell or Hold?
As per TipRanks, analysts are cautiously optimistic about the stock and have a Moderate Buy consensus rating, which is based on six Buys and five Holds. BK stocks’ average price forecast of $49.27 implies 28.04% upside potential.
Further, BK stock boasts a score of 8 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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