Bank of New York Mellon announced to buy, sell, hold, and transfer clients' Bitcoin’s, The Wall Street Journal reported Thursday, marking a key development in bringing awareness to cryptocurrencies community.
The firm - America's oldest bank - will soon allow crypto currencies to be treated the same as more established investments in its asset-management system. Banks including BNY Mellon previously had to work with separate custodial firms to manage cryptocurrency holdings, Roman Regelman, CEO of BNY Mellon's asset servicing and digital arms, told The Journal.
Established public companies have since joined the fray, buying up Bitcoin and Altcoins as an alternative reserve asset. Most recent, Elon Musk announced Monday it bought $1.5 billion in bitcoin and would soon allow customers to buy vehicles with the token. The tweet pushed bitcoin above $48,000 for the first time.
The Office of the Comptroller of the Currency said last month that “banks could use blockchain-based currencies and stablecoins - digital tokens backed by fiat currencies - for certain transactions. Though the guidance doesn't directly affect bitcoin, it signals the government is increasingly accepting of digital currencies and their use cases.”