World’s largest custodian bank, BNY Mellon, teams up with Chainalysis to track crypto transactions
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Bank of New York Mellon (BNY Mellon) has announced a partnership with the blockchain data analytics firm Chainalysis to provide a crypto-transaction tracing service for its customers.
War in Eastern Europe is roiling the financial markets, and who knows how long that will play out and exactly how, but plenty of positive crypto-related partnerships have been forming at an institutional level lately and this is one of them.
BNY Mellon currently oversees about US$46.7 trillion in assets, making it the world’s biggest custodian bank, and this partnership will form part of the institution’s strategy to develop crypto services for its clients.
That’s a strategy that was first announced by the financial giant in February last year – the firm is building a multi-asset digital custody and administration platform for both traditional and digital assets.
And BNY Mellon now plans to integrate Chainalysis compliance software to assess broad trends in the crypto market and “granular activity” in support of its compliance and due-diligence practices.
— Chainalysis (@chainalysis) February 23, 2022
The KYT-flagging system can swiftly determine whether crypto transfers are deemed “high risk”. Reactor is an investigative tool that hunts for suspicious activity on the blockchain, while Kryptos collects and interprets complex transactional and volume-related data.
“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,” said Caroline Butler, Global Head of Custody, Tax and Network Management for BNY Mellon.
In November, Chainalysis opened a new office in Canberra after partnering with a number of crypto businesses Australia last year.
Also in November, the Commonwealth Bank of Australia announced a partnership with Cameron and Tyler Winklevoss’ Gemini Exchange and Chainalysis to offer a crypto exchange and custody service for its Commbank users.
Similar to the services it’s now offering BNY Mellon, Chainlaysis will be providing blockchain-data analysis to help CBA’s compliance teams monitor and mitigate the threat of crime through the exchange of crypto assets.