BNY Mellon Joins 6 Major Banks in Backing New Bitcoin Exchange

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, both State Street and BNY Mellon intend to provide technology to Pure Digital and also 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.