BNY Mellon Moves Forward With Bitcoin Custody Services Following SEC Exemption
Bank of New York Mellon (BNY Mellon) is advancing its plans to offer custody services for Bitcoin (BTC) and Ethereum (ETH) after receiving an exemption from the SEC’s Staff Accounting Bulletin (SAB) 121. This exemption allows BNY Mellon to avoid classifying cryptocurrency custody as a balance-sheet liability. The SEC's Office of the Chief Accountant reviewed BNY Mellon's approach and did not object to its determination regarding regulated exchange-traded products (ETPs). The bank aims to engage further with the SEC for additional custody use cases. The crypto custody market is projected to grow significantly, potentially reaching $300 million, with providers charging higher fees due to enhanced security needs. BNY Mellon currently supports 80% of SEC-approved Bitcoin and Ether ETPs and seeks to provide a comprehensive custody solution amid increasing demand, especially following the launch of US spot Bitcoin ETFs.
