Bank of New York Mellon Corp (NYSE:BK) has partnered with blockchain analytics firm Chainalysis to track its clients' cryptocurrency transactions.
What Happened: BNY Mellon will use Chainalysis software to track and record the data of its cryptocurrency products.
The risk management software includes Chainalysis KYT (Know Your Transaction), Reactor, and Kryptos. The KYT tool will be primarily used to monitor real-time cryptocurrency transactions and detect “patterns of high-risk activity.”
Chainalysis Reactor, the main investigative tool, will provide deeper due diligence into suspicious activity.
“BNY Mellon enters the digital asset market as the most trusted asset servicer in the space,” said Caroline Butler, Global Head of Custody, Tax and Network Management for BNY Mellon.
“Working with Chainalysis and other leading fintech providers is foundational to our role as a trusted innovator and the extension of our capabilities into products that serve the growing cryptocurrency market.”
In February 2021, BNY Mellon set up a new Digital Assets unit to offer digital assets and cryptocurrencies to its clients.
With over $46 trillion in assets under custody, BNY Mellon became the country’s first multi-asset custody platform to service traditional assets and cryptocurrencies.
Price Action: At press time, Bitcoin (CRYPTO: BTC) was trading at $35,000, down 8.15% in the last day. Ethereum (CRYPTO: ETH) lost 12% and Dogecoin (CRYPTO: DOGE) was down 16.3% over the same period.
