According to a report by Bloomberg, BNY Mellon is making progress towards providing custodial services for Bitcoin and Ether held by its ETF clients.
This move could potentially challenge the dominant position of Coinbase, which currently handles most US-based spot Bitcoin ETFs, including those of BlackRock. The bank’s progress is the result of a review by the Office of the Chief Accountant at the SEC.
The review did not have any objections to BNY Mellon’s plan to safeguard crypto assets for its regulated exchange-traded product clients without recognizing them as a liability on its balance sheet.
This ruling allows BNY Mellon to move forward without the burden of accounting for these digital assets, which is a significant hurdle in offering crypto custody services.
Furthermore, the SEC has granted BNY Mellon an exemption from SAB 121, a rule that typically requires banks to record crypto-related assets on their balance sheets.
