On Wednesday the Bank of New York Mellon Corporation (“BNY Mellon”), announced that it had selected blockchain data platform Chainalysis’ cryptocurrency compliance software as part of the bank’s risk management program. The announcement stated that this is a first step in BNY Mellon’s strategy to develop cryptocurrency services for its clients.
“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.”
Earlier this month BNY Mellon announced that it’s in the process of building the industry’s first multi-asset digital custody and administration platform for traditional and digital assets. BNY Mellon plans to deploy the entire Chainalysis compliance software portfolio to assess broader cryptocurrency trends and lower-profile activity in support of its due diligence and compliance protocols going forward.
The Chainalysis risk management software suite includes Chainalysis KYT (Know Your Transaction); Reactor – which links crypto with real-world entities; and Kryptos – which provides in-depth on-chain metrics.
Chainalysis KYT performs continuous, real-time transaction monitoring for all cryptocurrency assets to detect patterns of high-risk activity. Chainalysis Reactor, the investigative tool, provides deeper due diligence into suspicious conduct. While Chainalysis Kryptos offers high-level insight into cryptocurrency services including transaction volumes, counterparties, and benchmarking, so that financial institutions can develop effective compliance frameworks.
Terms and details regarding the agreement were not disclosed.