Michael Demissie, the pinnacle of digital assets at Bank of New York Mellon (BNY Mellon) is adamant that the cryptocurrency market fall in 2022 gained’t waver institutional curiosity in digital assets.
At a convention run by Afore Consulting on Feb. 8, Demissie stated the digital asset trade is “here to stay” as institutional traders have held a powerful curiosity in crypto.
“What we see is clients are absolutely interested in digital assets, broadly,” he said, according to a Feb. 8 report from Reuters.
Demissie backed up his thoughts by referencing a survey conducted by BNY Mellon in October, 2022, which found that 91% of custodian bank clients are interested in investing in blockchain-based tokenized products.
The survey also found that 86% of institutional players are adopting a “buy and hold” strategy, which may suggest that they see the cryptocurrency market as a long-term play.
88% of those surveyed also said the severe cryptocurrency market turndown in 2022 hasn’t changed their plans to invest in the digital asset sector over the long term.
Adoption charges of cryptocurrencies and digital assets are nonetheless rising, regardless of the latest crypto winter, Fireblock’s Michael Shaulov, tells Aerial View. Visit https://t.co/vELI6pZUDy #aerialviewbites #cutthroughthecorporate #sibos #aerialview #digitalassets @bnymellonAV pic.twitter.com/Po4bgEpJn9
— BNY Mellon (@BNYMellon) October 28, 2022
Demissie did nevertheless state that extra work wanted to be executed in Washington D.C. in order that trade gamers can transfer ahead with extra regulatory readability.
“We absolutely need clear regulation and rules for the road. We need responsible actors who can offer reliable services that live up to investors trust.”
“It’s important that we navigate this space in a responsible way,” he added.
On Feb. 2, BNY Mellon introduced the appointment of Caroline Butler because the agency’s CEO of Digital Assets to assist drive the following wave of adoption for the financial institution’s shoppers.
Butler was beforehand the CEO of custody companies.
As the Digital Assets CEO, Caroline Butler will lead international efforts to speed up @BNYMellon’s business digital assets initiatives. https://t.co/tYbuJzrAZt pic.twitter.com/OacBbHO1xZ
— BNY Mellon (@BNYMellon) February 2, 2023
The appointment comes as BNY Mellon launched its personal digital custody platform in October, 2022, providing chosen institutional shoppers the chance to spend money on Bitcoin (BTC) and Ether (ETH).
Earlier in February, 2022, BNY Mellon introduced a partnership with on-chain metrics platform Chainalysis to assist monitor and analyze cryptocurrency merchandise.
Related: Clear laws will speed up crypto adoption, says SEBA Bank exec
BNY Mellon isn’t the one massive financial institution making strikes within the digital asset trade of late.
Goldman Sach was reportedly expressed curiosity in shopping for cryptocurrency corporations after a number of had been impacted by FTX’s catastrophic collapse in November.
While JPMorgan CEO Jamie Dimon isn’t a fan of Bitcoin, his agency has dabbled with blockchain-based companies in latest instances. In November, the agency efficiently executed its first-ever cross-border transaction utilizing decentralized finance (DeFi) on a public blockchain.