America’s oldest bank partners with Chainalysis to track crypto transactions
BNY Mellon, America’s oldest bank, has partnered with Chainalysis to integrate the latter’s compliance software suite to allow it to monitor and analyze crypto products.
Cover art/illustration via CryptoSlate
BNY Mellon, America’s oldest bank, announced that it has partnered with Chainalysis to integrate the latter’s compliance software suite with its multi-asset digital custody and administration platform.
“BNY Mellon plans to integrate the full Chainalysis compliance software suite to assess broader cryptocurrency trends and granular activity in support of its compliance and due diligence practices.”
The move is part of the custodian bank’s strategy to offer crypto services to its clients. The integration will allow it to track the assets of the custody services it will offer clients.
“BNY Mellon is the best of both worlds: it has the reputation of being one of the world’s most trustworthy banks while fostering an innovative and forward-thinking culture. We are proud to collaborate with them as they launch their digital assets business.”
Chainalysis co-founder and chief strategy officer, Jonathan Levin, said, adding that his company believes financial institutions are “critical to the overall growth” of the crypto industry.
The compliance software
The Chainalysis risk management software suite includes three main tools.
The first is KYT, or Know Your Transaction, which monitors all cryptocurrency transactions in real-time to real-time to identify “high-risk” activity.
The second is Reactor, which is an investigative tool that companies can use for due diligence into suspicious activity, while the third is a reference directory called Kryptos, which is designed to help financial institutions understand the risks digital assets can pose.
The suite is designed to help financial institutions develop a better understanding of digital assets so they can build effective compliance frameworks.
Growing interest among banks
Traditional financial institutions across the globe are starting to dip their toes in the crypto industry, despite heavy reservations in the recent past.
Large banks have recently announced plans to offer crypto services to their clients or hold crypto as an asset, while some have already begun. Singapore’s DBS, South Korea’s Kookmin Bank and KPMG Canada are some of the most recent to announce their interest in crypto.
Meanwhile, Amundi said it is looking to invest in NFTs, and analysts at Goldman Sachs Group are telling clients that Bitcoin will compete with gold. Goldman Sachs and Morgan Stanley have already been offering their wealthiest clients the option to invest in cryptocurrencies.