Blockchain analysis platform Chainalysis has been roped in as a partner by Bank of New York Mellon (BNY Mellon) to facilitate the tracking of user transactions. Chainalysis, which provides services to traditional financial institutions, also provides crypto compliance tools which is what BNY Mellon is interested in as part of the bank's risk management programme. BNY Mellon is the largest holder of securities, commodities, and cash in the world, managing around $46.7 trillion (roughly Rs. 35,31,64,080 crore) worth of assets across 35 countries.
Through this partnership, BNY Mellon will use the software provided by Chainalysis to track, record, and utilise data related to cryptocurrency assets. The custodian bank will benefit from some of the features offered by Chainalysis.
These features, as highlighted by Chainalysis in a blog post are Know Your Transaction (KYT), Reactor, and Kryptos. KYT will be at the top of the beneficial features for BNY Mellon because it will the custodian bank analyse transactions based on their level of risk.
KYT will also make sure that cryptocurrencies cannot be transferred to sanctioned wallet addresses.
As announced by BNY Mellon in February 2021, the firm is building the industry's first multi-asset digital custody and administration platform for traditional and digital assets. The partnership with Chainalysis will thus form a component of BNY Mellon's strategy to develop cryptocurrency services for its clients by supporting compliance and due diligence practices.
“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, BNY Mellon.
Meanwhile, Jonathan Levin, co-founder and Chief Strategy Officer, Chainalysis says, "Chainalysis has always believed that financial institutions are critical to the overall growth and success of the cryptocurrency industry. BNY Mellon is the best of both worlds: it has the reputation of being one of the world's most trustworthy banks while fostering an innovative and forward-thinking culture. We are proud to collaborate with them as they launch their digital assets business."
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