In the world of financial regulations,” know your customer( KYC)” is a common theme among clients who deal with the sensitive information of various clientele. However, banking conglomerate BNY Mellon has teamed up with New York,cryptocurrency based software company Chainalysis in their latest push for digital transparency when it comes to safeguarding their financial assets in a highly digitized world. This will mark the industry’s first digital custody platform with the functionality to provide admin access while integrating blockchain technology in conjunction with bank level security measures. BNY Mellon will also become the only GSIB to fully deploy the softwares functionality in their day to day customer transactions.
Caroline Butler, head of global custody,tax, and digital management sees the move as incremental in gaining the world’s “trust as an innovator”during their expansion into the cryptocurrency markets. The move comes on the heels of an extremely profitable Series E funding round of $100 million dollars for Chainalysis last year with venture capitalist Coatue in the driver’s seat. The digital blockchain company is recently responsible for reporting the theft of nearly $25 billion worth of cryptocurrency by cybercriminals over the past year and is touted as critical to the success of the industry by CSO, Jonathan Levin. Currently valued at over $4.2 billion as of last year, the move is bound to set an industry precedent in the digital security risk management space for decades to come.
