The Bank of New York Mellon Corporation, also known as BNY Mellon, has established a crypto custody service in Ireland. The launch of the digital asset custody is a move forward for the bank to expand its cryptocurrency prospects. The bank is also one of the first to offer crypto custody services and is officially one of the oldest banks in the United States.
The financial institution is very optimistic about the development of cryptocurrencies. Since the beginning of the year, the banks have repeatedly spiked up their interest in the cryptocurrency industry. Business Post reported that Lory Kehoe, the CEO of the finance giant, is taking a stake in cryptocurrencies by setting up a new unit in Ireland.
According to the report, BNY Mellon came into the Irish financial market in 1994 and had gone ahead to establish a ‘Digital Innovation hub’ to function as a custodian for digital assets including including Central Bank Digital Currencies (CBDCs), Non-Fungible Tokens (NFTs), and Bitcoin.
BNY’s Optimism of Cryptocurrencies while Ireland’s Central Bank Warns Against Them
Although the Bank of New York Mellon Corporation is bullish on cryptocurrencies, the Central Bank of Ireland does not share same optimistic view. In fact, the central bank has warned residents about the volatility of digital assets. The Irish Central Bank is also concerned about the sudden rise and popularity of cryptocurrencies like Bitcoin and has outlined their skepticism over the industry.
Derville Rowland, a top official of the Irish Bank has shared her opinion about cryptocurrencies and described them as speculative and unregulated. She also warned investors that they could lose all their funds if they invest in the industry.
Interestingly, Rowland is expected to take over in July this year as the Chairwoman of the European Securities and Markets Authority (ESMA)’s investment management standing Committee. This organisation has the jurisdiction to create financial regulations for all of Europe. In a way, her opinions about digital assets and cryptocurrencies is likely to trigger strict regulations over the industry in Europe.