Thu, September 26, 2024 at 21:40

• 

  Kang-hoon

  • Hello, Annie.

  • Today, I have some significant news about BNY Mellon.

  • The U.S. Securities and Exchange Commission (SEC) has approved BNY Mellon to offer cryptocurrency custody services.

  • 
• Annie

  • Wow, that's interesting!😊 BNY Mellon is a major player in the financial world, right?

  
• 

  Kang-hoon

  • Yes, indeed.

  • BNY Mellon is the largest custodian bank with $2 trillion in assets under management.

  • This approval is a big step for them.

• Annie

  • What exactly does this approval allow them to do?

  
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• 

  Kang-hoon

  • The approval allows BNY Mellon to expand its cryptocurrency custody services beyond just ETFs.

  • They can now manage individual digital assets for their clients.

• Annie

  • That sounds like a big deal.

  • How does this benefit their clients?

  
• 

  Kang-hoon

  • With this approval, clients can store their digital assets more securely.

  • BNY Mellon's individual wallet structure plays a crucial role in protecting these assets.

• Annie

  • So, this means more security for their clients' assets.

  • But why is this move significant for the market?

  
• 

  Kang-hoon

  • This move highlights the increasingly blurred lines between traditional finance and digital asset markets.

  • It shows that traditional financial institutions are taking digital assets seriously.

• Annie

  • I see.

  • Did BNY Mellon face any challenges in getting this approval?

  
• 

  Kang-hoon

  • Yes, previously, BNY Mellon received an exemption from the SEC's mandatory cryptocurrency custody accounting guidance.

  • This guidance required cryptocurrencies held in custody to be recorded as a liability, which was a significant hurdle.

• Annie

  • That sounds complicated.

  • What does this exemption mean for BNY Mellon?

  
• 

  Kang-hoon

  • The exemption allows BNY Mellon to offer custody services for cryptocurrencies without recording them as liabilities.

  • This is crucial for their business model.

• Annie

  • Got it.

  • So, what are their plans moving forward?

  
• 

  Kang-hoon

  • BNY Mellon plans to expand its custody services to include Bitcoin and Ethereum.

  • This will attract more clients interested in these popular digital assets.

• Annie

  • That's exciting!

  • Do you think this news is a positive development for the market?

  
• 

  Kang-hoon

  • Absolutely.

  • This is a positive development.

  • 

  • It indicates growing acceptance and integration of digital assets in traditional finance, which can boost market confidence and attract more institutional investors.

• Annie

  • Thank you, Kang-hoon.

  • This really helps me understand the significance of the news.😊

  
• 

  Kang-hoon

  • Upon comprehensive consideration, this news is perceived as a 😍Bullish.