BNY Mellon has partnered with Chainalysis to monitor cryptocurrency transactions
BNY Mellon, the oldest bank in the United States, has teamed with Chainalysis to integrate the latter’s compliance software package, enabling it to monitor and evaluate crypto goods.
BNY Mellon, the oldest bank in the United States, announced a partnership with Chainalysis to integrate the latter’s compliance software package with its multi-asset digital custody and administration platform.
“BNY Mellon intends to integrate the whole Chainalysis compliance software suite in order to monitor both broad cryptocurrency trends and more specific activities in support of its compliance and due diligence procedures.”
This action is consistent with the custodial bank’s objective of providing crypto services to its customers. The connection will enable it to keep track of the assets under management for the custody services it will provide to customers.
“BNY Mellon offers the best of both worlds: it is one of the most trustworthy banks in the world while still promoting an innovative and forward-thinking culture. We are honoured to work with them as they establish their digital asset company.”
According to Jonathan Levin, co-founder and chief strategy officer of Chainalysis, financial institutions are “essential to the overall success” of the cryptocurrency business.
Three primary components comprise the Chainalysis risk management software bundle. The first is KYT, or Know Your Transaction, which continuously analyses all bitcoin transactions in order to detect “high-risk” activities.
The second is Reactor, an investigative tool that businesses may use to do due diligence on questionable activities, and the third is Kryptos, a reference directory meant to assist financial institutions in understanding the dangers associated with digital assets.
The suite is intended to assist financial institutions in gaining a better knowledge of digital assets in order to facilitate the development of effective compliance regimes.
Banks are becoming more interested
Despite strong concerns in the recent past, traditional financial institutions throughout the world are beginning to dip their toes in the crypto market.
Large banks have lately declared intentions to provide cryptocurrency services to their customers or to store cryptocurrency as an asset, and some have already started. DBS Bank in Singapore, Kookmin Bank in South Korea, and KPMG Canada are among the most recent institutions to express interest in crypto.
Meanwhile, Amundi has said that it is interested in investing in NFTs, while Goldman Sachs Group experts have stated that Bitcoin will compete with gold. Goldman Sachs and Morgan Stanley have already begun selling cryptocurrency investments to its richest clientele.