On Thursday, BNY Mellon, the self-described “bank-of-banks” for institutions, corporations and individuals, custodian of $41.1 trillion in financial assets and manager of $2.2 trillion in client assets, announced that it is launching a new enterprise Digital Assets unit.
The unit will ramp up development of products and services to address rapidly evolving client needs around digital assets, including cryptocurrencies. Its first project in development is a client-facing prototype that will be the industry’s first multi-asset digital custody and administration platform for traditional and digital assets.
“BNY Mellon is proud to be the first global bank to announce plans to provide an integrated service for digital assets,” said Roman Regelman, CEO of Asset Servicing and Head of Digital at BNY Mellon. “Growing client demand for digital assets, maturity of advanced solutions, and improving regulatory clarity present a tremendous opportunity for us to extend our current service offerings to this emerging field.”
The Digital Asset unit will build on BNY Mellon’s digital savvy and strong expertise in investment services and investment management. Building upon advanced solutions such as blockchain (the foundational technology behind digital assets), BNY Mellon will improve custody–asset settlement, safekeeping and reporting–and other investment services.
“Enabling the use of digital assets is critical to transforming the future of custody,” said Caroline Butler, head of Custody at BNY Mellon. “Building the bridge between the traditional and digital spaces will create a front-to-back ecosystem for innovation. Our digital asset capabilities should help evolve the way the financial industry operates, including custody, collateral management, issuance, investment management and other segments where BNY Mellon is a key service provider.”
Gabelli ESG partnership
Earlier this week, BNY Mellon announced that it has been selected by mutual fund manager Gabelli Funds to facilitate the launch of its new actively managed ETF, Gabelli Love Our Planet and People (LOPP). Gabelli will use BNY Mellon’s platform (known as OMNI) for integrated custody, accounting, administration and ETF Service.
LOPP focuses on investing in companies committed to sustainable practices such as renewable energy and the reduction or recycling of long-lived wastes. The fund uses a research-intensive process of value focused social screens and a holistic ESG analysis to deliver returns in an environmentally accountable manner.
“This win marks yet another milestone in BNY Mellon’s growth in servicing active non-transparent ETF products,” said Ben Slavin, Global Head of ETFs, Asset Servicing at BNY Mellon. “Now more than ever, flows into the ESG space continue to climb, and it appears that this trajectory will only accelerate. We are proud to support these types of ESG-themed products through our OMNI platform, and are excited to work with Gabelli Funds to provide investors with the opportunity to expand their portfolios into ESG and sustainable investing-themed products.”
Offering its unique level of visibility in the ESG space and extensive experience with individual and institutional investment clients, BNY Mellon said it will support Gabelli Funds’ entry into the field. The firm expects the collaboration to promote greater efficiency and transparency in fund administration, providing value for investors seeking a fund that mirrors their own ESG principles.
