BNY Mellon Joins State Street to Offer a New Cryptocurrency Exchange Service

Jul 21, 2021

Bank of New York Mellon joins a new crypto initiative by supporting a new crypto exchange backed by US bank State Street.

BNY Mellon has joined a consortium of six banks to create London-based Pure Digital, a newly launched crypto trading platform, according to a Financial Times report on Wednesday.

The upcoming crypto company was in the industry spotlight in April when State Street announced plans to deploy its Pure Digital exchanges trading infrastructure through its technology subsidiary Currenex Forex. The institutional platform is to become a fully automated over-the-counter marketplace for cryptocurrencies with physical distribution and bank custody.

According to the report, BNY Mellon and State Street along with other unnamed banks will create a crypto trading venue behind Pure Digital to compete with the bigger players in the industry. “We’ve spoken to all of the leading banks, but we believe the custodians were among the first to see the need, so now they’re more advanced,” said Pure Digital CEO Lauren Kiley.

Campbell Adams, co-founder of Pure Digital, has stated that the company expects to start the transaction “within a week,” with the first expected to involve Bitcoin trading. The CEO also said that Pure Digital is not concerned about partnering with banking institutions and expressed his confidence that the bank’s contribution to industry adoption is important. “The crypto market needs banks, I don’t think it can scale without them,” he said.

Connected: Goldman Sachs Cryptocurrency Trading Desk expands to Ether

The latest news marks another major milestone in the adoption of crypto by financial institutions in the United States, with both BNY Mellon and State Street becoming increasingly involved in the industry. After announcing its crypto custody plans in February, BNY Mellon continues to get into crypto and last week became an exchange-traded fund servicer for major crypto asset manager Grayscale Investments.

State Street is known for its digital currency partnership with Winklevoss Bitcoin Exchange Gemini. Last month, the bank launched its own digital finance division focused on cryptocurrencies, blockchain technology, and central bank digital currencies.

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