Michael Demissie, head of digital assets at Bank of New York Mellon (BNY Mellon) insists that the cryptocurrency market crash in 2022 will not dampen institutional interest in digital assets.
Speaking at a conference hosted by Afore Consulting on Feb. 8, Demissie said that the digital asset industry is โhere to stayโ as institutional investors have taken great interest in cryptocurrencies.
โWhat we see is that clients are absolutely interested in digital assets, generally speaking,โ he said, according to a February 8 report from Reuters.
Demissie backed up her thoughts by referring to a survey conducted by BNY Mellon in October 2022, which found that 91% of custodian bank customers are interested in investing in blockchain-based tokenized products.
The survey also found that 86% of institutional players are adopting a โbuy and holdโ strategy, which may suggest that they view the cryptocurrency market as a long-term game.
88% of respondents also said that the severe cryptocurrency market crash in 2022 has not changed their plans to invest in the digital asset sector in the long term.
Adoption rates for cryptocurrencies and digital assets continue to grow, despite the recent crypto winter, Fireblock's Michael Shaulov tells Aerial View. Visit https://t.co/vELI6pZUDy #vistaaereabites #cutthroughthecorporation #sibos #aerial view #digital resources @bnymellonAV pic.twitter.com/Po4bgEpJn9
โBNY Mellon (@BNYMellon) October 28, 2022
However, Demissie asserted that more work needs to be done in Washington DC so that industry players can move forward with more regulatory clarity.
"We absolutely need clear regulation and rules of the road. We need responsible players who can offer reliable services that live up to the trust of investors."
"It's important that we navigate this space responsibly," he added.
On February 2, BNY Mellon announced the appointment of Caroline Butler as the firm's chief digital asset officer to help drive the next wave of adoption for the bank's clients.
Butler was previously CEO of escrow services.
As CEO of Digital Assets, Caroline Butler will lead global efforts to accelerate @BNYMellondigital asset business initiatives. https://t.co/tYbuJzrAZt pic.twitter.com/OacBbHO1xZ
โBNY Mellon (@BNYMellon) February 2, 2023
The appointment comes as BNY Mellon launched its own digital custody platform in October 2022, offering selected institutional clients the opportunity to invest in Bitcoin (BTC) and ether (ET).
In early February 2022, BNY Mellon announced a partnership with on-chain metrics platform Chainalysis to help track and analyze cryptocurrency products.
Related: Clear Regulations Will Accelerate Cryptocurrency Adoption, Says SEBA Bank Exec
BNY Mellon isn't the only big bank making moves in the digital asset industry of late.
Goldman Sach reportedly expressed interest in buying cryptocurrency firms after several were affected by The catastrophic collapse of FTX in November.
While JPMorgan CEO Jamie Dimon is not a fan of Bitcoin, his company has dabbled in blockchain-based services of late. In November, the firm successfully executed its first cross-border transaction using decentralized finance (DeFi) on a public blockchain.
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