Almost every established bank is nowadays willing to enter the cryptocurrency market following the surge in adoption worldwide. DBS Bank & Citi Bank are among the leading traditional financial intuition offering several crypto based services to maintain their dominance in the global financial market.
It is reported that the U.S Securities and Exchange Commission (SEC) has given a green signal to Bank of New York Mellon Corp for crypto custody above Exchange Traded Funds.
According to the available information the bank evolved as the first institution to get an exemption from Biden-vetoed SAB 121; it is qualified to offer digital assets and Bitcoin custody services.
The SEC Chair, Gary Gensler, said that Mellon’s crypto custody framework and its existing structure for Bitcoin and Ethereum could be extended and utilized for other digital assets.
“Though the actual consultation related to two crypto assets, the structure itself was not dependent on what the crypto was; it didn’t matter what the crypto was,” Gensler noted.
He described that the ‘non-objection’ to expanding custody services is based on the structure itself, not the type of crypto asset. This provides a precedent for other banks considering entering crypto custody.
It is important to note that BNY uses individual cryptocurrency wallets, assuring that the assets of customers are safe and stored separately from the bank’s assets, helping them mitigate the risk of losses in case of insolvency.
The wallets of BNY are created with the consultation of the Securities and Exchange Commission’s Office of Chief Accountant, directing to the “non-objection” decision by the regulatory commission.
Crypto Custody Market Size
According to a study by Business Research Insight, the vast global digital asset custody market size was $553.82 billion in 2023 and is projected to reach $3742.82 billion by 2032 at a CAGR of 23.65%.
Market spectators comment that COVID-19- 19, the disastrous pandemic that shocked the finance markets, including other markets, which backed the popularity of crypto custody services.
BitGo, Coinbase, Tangany, Hex Trust, Bakkt, Cactus Custody, and Fireblock are some significant players in the crypto custody market. Some reports claim the traditional custody services market is comparatively less than the cryptocurrency custody market.
Other Market News Updates
On September 26, 2024, Todayq reported that bad actors gained access to the YouTube channels belonging to Indian podcaster Ranvir Allahbadia. Both the channel’s names were changed following the hack and the content was deleted.
After that, the hackers uploaded old clips of Tesla owner Elon Musk and Donald Trump.
However, the mastermind behind it has yet to be identified, several experts and enforcement agencies are working to identify the culprit.
The breach was conducted to promote a cryptocurrency scam in the name of Musk; hackers leveraged the live stream feature of YouTube and presented a clone of Musk developed through AI, arguing that people should invest in a suspicious website.
While talking over the lawsuit with the SEC and matters, the President of Ripple notes that stablecoin ‘RLUSD’ is expected to enter the market by the end of this year. However, Ripple is seeking approval from the U.S regulator to launch the stablecoin.
Crypto Market Price Updates
When writing, the cryptocurrency market capitalization was $2.28 trillion, with an intraday surge of 2.59%. At the same time, the fear and greed index by CoinMarketCap was at 54, reflecting neutrality in the market.
Until publishing, Bitcoin was trading at $64,885, with a surge of 2.87% in the past 24 hours; its trading volume surged over 42%, reaching $36,306,167,136. Ethereum was trading at $2,664 with an addition of 0.95%; similarly, its trading volume grew over 16%, reaching $16,576,500,382.
