The Bank of New York Mellon (BNY Mellon) announced Wednesday it will back the launch of a new London-based cryptocurrency exchange called Pure Digital, the first major bitcoin trading platform backed by a consortium of large banks.
The announcement is the latest to build excitement around the as-yet-unlaunched exchange, coming just months after State Street Corporation announced it would partner with Pure Digital and marking an aggressive shift in strategy for the traditionally conservative asset managers.
In statements, Pure Digital’s Chief Executive Officer Lauren Kiley remarked it is the increasing public interest around Bitcoin that is driving banks into the asset class.
“We have spoken to all the top-tier banks but we think custody banks were some of the first to see demand, so they are now more advanced,” she told Financial Times.
Notably, State Street will be providing technology to Pure Digital, and both State Street and BNY Mellon will trade on the platform. A press release from BNY Mellon noted that “BNY Mellon will collaborate closely with Pure Digital and the other banks to help establish a new front-to-back office solution for transacting digital assets.
It will also reportedly play a role in determining the optimal structure for the platform, to be hosted by Pure Digital, though it awaits final regulatory approval.
Global Head of Foreign Exchange at BNY Mellon Jason Vitale also commented on the future of Bitcoin at BNY Mellon: “Digital assets are only going to become more embedded in global markets in the years ahead and this collaboration accords with BNY Mellon’s wider strategy to develop a digital asset capability for clients across the entire trade life cycle.”
The plans for this partnership stem from February, when BNY Mellon announced it was entering the bitcoin space through the creation of a new digital assets unit.
Founder of Pure Markets Campbell Adams concluded that the first trade will take place on the Pure Digital platform “within a week.”
Image via BNY Mellon