Regulation
BNY Plans Crypto ETF Custody as Wall Street Eyes Digital Asset Revenue
- BNY won’t have to follow SAB 121 rule for crypto ETP clients
- Banks recognize custodied crypto on balance sheet under rule
Bank of New York Mellon Corp. is moving closer to rolling out custody services for the Bitcoin and Ether held by exchange-traded product clients after a review enabled the company to avoid treating the assets as a balance-sheet liability.
The review, conducted earlier this year by the Office of the Chief Accountant at the Securities and Exchange Commission, didn’t object to BNY’s determination that the safeguarding of cryptoassets for its regulated exchange-traded product clients shouldn’t be recognized on BNY’s balance sheet, the bank said in a statement to Bloomberg News on Tuesday.