BNY Mellon partners with Chainalysis to assess crypto trends
This makes BNY Mellon “the first global bank with plans to use Chainalysis’ compliance software”
The Bank of New York Mellon (BNY Mellon), the third-oldest US bank, has partnered with Chainalysis to help assess broad crypto trends in support of its compliance and due diligence practices.
This makes BNY Mellon the first systemically important bank in the world to use the blockchain data platform’s compliance software as part of its risk management programme, according to Chainalysis.
The risk management software suite from Chainaylsis will supply three key services to the bank:
- Know Your Transaction performs continuous, real-time transaction monitoring for all cryptocurrency assets to detect patterns of high-risk activity
- Reactor offers an investigative tool that provides deeper due diligence into suspicious activity
- Kryptos provides high-level insight into matters such as transaction volumes “so that financial institutions can develop effective compliance frameworks”.
‘Trusted asset service provider’
Caroline Butler, global head of custody, tax and network management for BNY Mellon said: “BNY Mellon enters the digital asset market as the most-trusted asset servicer in the space.
”Working with Chainalysis and other leading fintech providers is foundational to our role as a trusted innovator and the extension of our capabilities into products that serve the growing cryptocurrency market.”
Jonathan Levin, co-founder and chief strategy officer for Chainalysis, said: “Chainalysis has always believed that financial institutions are critical to the overall growth and success of the cryptocurrency industry.
“BNY Mellon is the best of both worlds: it has the reputation of being one of the world’s most trustworthy banks while fostering an innovative and forward-thinking culture. We are proud to collaborate with them as they launch their digital assets business.”
BNY Mellon says cryptos could boost revenue in 2023
In January this year, BNY Mellon’s chief financial officer (CFO) Emily Portney said crypto assets could provide a meaningful contribution to the bank’s revenue by 2023 or 2024.
At the time, she explained the bank had already collaborated with Fireblocks – a unicorn fintech that enables financial institutions to store, move and issue cryptos – a partnership that would be “foundational to everything we’re going to do”, Portney told Bloomberg.
The bank is waiting for clarity from global regulators over the rules governing digital assets.