Oldest U.S. Bank BNY Mellon to Provide Asset Management and ETF Services to Grayscale Bitcoin Trust CryptoGlobe

Grayscale Investments has engaged the oldest bank in the United States, BNY Mellon, to provide asset servicing to its bitcoin trust. The bank will also provide ETF services for the bitcoin trust during its conversion into an exchange-traded fund (ETF).

Grayscale partners with BNY Mellon

Grayscale Investments announced on Tuesday that it has selected Bank of New York Mellon (BNY Mellon) as the asset servicing provider for Grayscale Bitcoin Trust (OTCQX: GBTC). The announcement explains:

Through this agreement, BNY Mellon will provide Grayscale Bitcoin Trust with fund accounting and administration beginning October 1, 2021. In addition, BNY Mellon is expected to provide transfer agency and ETF services for Grayscale. Bitcoin Trust during its conversion into an ETF.

“The agreement will provide Grayscale with enhanced scalability, resiliency and automation through BNY Mellon’s market-leading platform,” the company says.

Michael Sonnenshein, CEO of Grayscale Investments, said, “BNY Mellon’s commitment is an important step in our commitment to convert Grayscale Bitcoin Trust into an ETF.

The oldest bank in the United States, BNY Mellon is a global investment firm with operations in 35 countries. As of March 31, the bank had $41.7 trillion in assets under custody and/or administration, and $2.2 trillion in assets under management, according to its website. BNY Mellon set up a crypto unit to offer bitcoin services in February.

Roman Regelman, CEO of Asset Servicing and Head of Digital at BNY Mellon, said on Tuesday, “Providing essential fund administration services to the world’s largest digital currency asset manager further confirms that BNY Mellon is sits squarely at the intersection of trust and innovation”. He added:

This is another critical step in our rapidly growing digital asset capabilities and our broader strategy of putting customer choice at the center of everything we do.

What are your thoughts on Grayscale choosing BNY Mellon to provide asset management and ETF services for its bitcoin trust? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

Image credits: Shutterstock, Pixabay, Wiki Commons

Warning: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Comments are closed.