America’s Oldest Bank to Track Customers’ Bitcoin Transactions With Chainalysis Integration
BNY Mellon, the world’s largest custodian bank, is set to integrate blockchain data platform, Chainalysis to help monitor and analyze cryptocurrency products. The move is a part of the institution’s strategy to build cryptocurrency services for its clients.
BNY Mellon’s Bold Move
According to the official announcement, the NY-based company plans to integrate the full Chainalysis compliance software suite to the multi-asset digital custody and administration platform.
This will help its clients to assess the cryptocurrency trends and “granular activity in support of its compliance and due diligence practices.” In short, BNY Mellon wishes to track the assets of the custody services that it provides its clients with.
Under the risk management software offered by Chainalysis, KYT (Know Your Transaction) is tasked with performing continuously. It also monitors real-time transactions for all cryptocurrency assets and detects “high-risk” activity.
Chainalysis’ investigative tool – Reactor – offers companies with deeper due diligence into suspicious activity. Chainalysis’ Kryptos is the reference directory for cryptocurrency services’ on-chain activity. The software is designed to assist financial institutions in understanding the risks associated with digital assets and investment opportunities.
Jonathan Levin, Co-founder and Chief Strategy Officer of Chainalysis, highlighted the significance of financial institutions on the growth of the cryptocurrency industry and added,
“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’s Crypto Endeavors
It was just a year ago when BNY Mellon leaped into the Bitcoin market after announcing adding support for cryptocurrencies on behalf of its asset-management clients. It also partnered with Grayscale to assist the world’s largest digital asset manager in converting its BTC Trust into an exchange-traded fund (ETF).
BNY Mellon’s Chief Executive Officer, Emily Portney, recently predicted in an interview that Bitcoin and altcoins have the potential to contribute substantially to the bank’s revenue in 2023. She stated that the regulatory authorities across the world should implement clarity in the space, which the exec considers will be a stepping stone for her bank.
