Pure Digital to Offer Institutional Investors a Market for Digital Assets and Cryptocurrencies with Physical Delivery and Bank Custody Banks working together is an indication of “significant common challenges and changes in the market,” says industry official
BNY Mellon is the latest bank to collaborate with Pure Digital, an interbank marketplace for cryptocurrency price discovery and wholesale risk trading, to develop a platform for digital asset trading.
Jason Vitale, global head of forex at BNY Mellon, said in a statement that digital assets will continue to further integrate into global markets, noting that this collaboration aligns with the company’s broader strategy to expand a digital asset capacity for customers across the entire commerce lifecycle.
The news comes after BNY Mellon, which has $ 45 trillion in assets in custody, formed a digital assets unit in February. The Wall Street goliath revealed at the time that it was developing a client-centric prototype that is designed to be the industry’s first multi-asset digital custody and administration platform for traditional and digital assets.
“BNY Mellon is one of the oldest and most respected financial institutions in the country, so its commitment to developing digital asset capabilities for its clients speaks volumes about the maturation of the crypto ecosystem as a whole,” co -Founder of Unstoppable Domains Brad Kam aka Blockworks. “Banks need to innovate to be competitive, and those that haven’t announced plans to introduce crypto offerings are probably already working on plans and partnerships behind the scenes.”
BNY Mellon joins State Street’s Currenex unit, which Pure Digital selected in April to provide the trading infrastructure for its new wholesale digital currency trading platform.
“I think BNY Mellon’s decision is revealing as they will be working with other banks,” said Jason Mochine, director of Marchare, a sales consultancy specializing in FinTechs in capital markets and financial markets. arenas of digital assets. “The only time banks agree to play together is when they are faced with significant common challenges and market shifts.”
State Street, which has around $ 40 trillion in custody, has pushed further into the cryptocurrency space since announcing its partnership with Pure Digital by launching a new division focused on the switch to digital finance last month. State Street CEO Ron O’Hanley called digital assets a “trend that’s here to stay.”
Fidelity’s digital assets division was apparently looking to increase its workforce as part of a campaign to leverage DeFi, tokenized assets and other blockchain capabilities. Bank of America launched a cryptocurrency research effort earlier this month and has reportedly started allowing certain clients to trade bitcoin futures.
“Without a doubt, all banks will eventually need to connect to an infrastructure capable of handling both traditional and digital assets as the latter mature and, over time, replace the former,” Mochine told Blockworks.
The Pure Digital platform will be a fully automated high-speed OTC marketplace for digital assets and cryptocurrencies with physical delivery and bank custody, the company explained. Its final platform, which is subject to regulatory approval, will leverage the company’s forex industry infrastructure to provide users with stability, security, transparency and capital efficiency, the company said.
“As more and more leading banks join our initiative, we are moving closer to an efficient crypto wholesale market,” the CEO of Pure Digital said in a statement, “which will ultimately lead to a class more stable and mature assets “.
A spokesperson for BNY Mellon declined to comment and a representative for Pure Digital did not immediately respond.