US banking corporation BNY Mellon is gearing up to offer crypto custody services out of Dublin where it has just set up a digital hub. The news coincides with a dire warning issued by a top official of the central bank in Ireland, stating that people should only buy bitcoin when they are prepared to lose money.
BNY Mellon to Provide Custody for Digital Assets Through Dublin-Based Entity
After the decision to enter the cryptocurrency space announced In February, the Bank of New York Mellon has now created a “Digital Innovation Hub” in Dublin. The Business Post reported that the entity will act as a custodian for crypto assets, noting that with the move, “the banking giant is betting on the future of bitcoin and other cryptocurrencies.”
The hub will allow customers to hold, transfer and issue digital assets, the Irish publication detailed. Custodial services will be provided for a variety of assets including the cryptocurrency with the largest market cap, bitcoin (B T c), non-fungible tokens (NFT), and central bank digital currencies (CBDC)
BNY Mellon is America’s oldest banking institution through its predecessor Bank of New York, which merged with Mellon Financial Corporation in 2007. It is also the world’s largest custodian bank and asset servicing company. As of March 31, the bank has assets of $ 41.7 trillion under custody or administration and $ 2.2 trillion under management.
The Bank of New York Mellon Corporation currently operates in 35 different countries, according to Website. It has been maintaining a presence in the Republic of Ireland since 1994, and its new crypto asset unit in Dublin will be regulated by the Central Bank of Ireland (CBI)
Cryptocurrency is a ‘great concern’, says director of Bank of Ireland
Soon after news of BNY Mellon’s involvement with the digital asset surfaced, a high-ranking Central Bank of Ireland official warned that the growing popularity of cryptocurrencies such as bitcoin is “a matter of great concern.” In an interview with Bloomberg, CBI Director General for Financial Conduct, Derville Roland stated that “crypto assets are fairly speculative, erratic investments.”
Rowland, who has been involved with the bank’s recent enforcement investigation, also stressed that those looking to invest in cryptocurrencies “should be really aware that they could lose that entire investment.” His department is known for levying hefty fines on some of Ireland’s biggest financial companies.
The CBI has already fined most Irish retail banks for pledging or is still investigating. Earlier this year, the central bank fined Dewey, Ireland’s largest securities firm. The company has since been put up for sale following the resignation of its top managers. Speaking about the case, Rowland said Davey needed to “look in the mirror” and ask himself “how things went so horribly wrong.”
With his latest comments regarding cryptocurrencies, Darvill Rolland joins a group of other central bank officials who have warned against crypto investments. Among them is the Governor of the Bank of England Andrew Bailey Who recently confirmed their suspicions about crypto-assets and insisted that they are “dangerous” to the public. Rowland now preparing to take over as chairman of the Investment Management Standing Committee esma, European Securities and Markets Authority, in July.
What is your opinion on Derville Rowland’s comments about cryptocurrency and do you think other banks such as BNY Mellon will set up crypto units in Ireland? Tell us in the comments section below.
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