An executive from the Bank of New York Mellon (BNY Mellon) has a broadly positive view of cryptocurrencies, seeing their growth in the face of market turbulence as proof of their viability.
Michael Demissie, the head of digital assets at the world’s largest custodial bank by assets and the oldest lender in the U.S., asserted on Feb 8 that digital assets are “here to stay” as institutional players are increasingly interested in crypto.
Institutional Investors “Absolutely Interested” In Crypto
Institutional investors are still betting on crypto even after being rekt in 2022 and the angst surrounding escalating regulatory scrutiny.
Speaking during a conference run by Afore Consulting on Wednesday, BNY Mellon digital assets head Michael Demissie noted that interest in crypto by deep-pocketed investors is still strong.
“What we see is clients are absolutely interested in digital assets, broadly,” he opined, per a Reuters report.
Demissie cited a survey commissioned by BNY Mellon last October, which found that 86% of institutional investors are buying cryptocurrencies for a long-term hold. Additionally, 88% of the respondents said the steep market correction last year has not altered their plans to invest in the crypto sector. These milestones demonstrate institutional players’ growing confidence in the future of cryptocurrencies.
Still, Demissie believes legislators and lawmakers must step in to offer more regulatory clarity on the cryptocurrency market to ensure all participants maneuver this space in a responsible manner.
“We absolutely need clear regulation and rules for the road. We need responsible actors who can offer reliable services that live up to investors trust.”
Growth Despite Turbulence
BNY Mellon unveiled a service in October 2022 that holds crypto for clients, beginning with bitcoin (BTC) and ether (ETH).
Earlier this year, the custodial banking giant promoted Caroline Butler to CEO of Digital Assets to help propel the next wave of adoption for its customers.
BNY Mellon is not the only Wall Street institution making huge moves in the sector of late. Goldman Sachs offers over-the-counter crypto trading for clients and is reportedly looking to scoop up many former crypto giants washed out by the ongoing bear market and FTX’s spectacular fall in November.
That being said, these are all clear indications that some of the world’s richest are still interested in the nascent space in spite of the lacklustre prices.
