BNY Mellon Ropes in Blockchain Analysis Firm Chainalysis to Monitor User Transactions

Chainalysis provides services to traditional financial institutions that want to venture into crypto.

By Shomik Sen Bhattacharjee | Updated: 24 February 2022 18:10 IST

BNY Mellon Ropes in Blockchain Analysis Firm Chainalysis to Monitor User Transactions

Photo Credit: Twitter/ Chainalysis

BNY Mellon has announced its partnership with Chainalysis

Highlights

BNY Mellon is the world’s largest custodian bank
BNY will utilise Chainalysis software to track data around crypto assets
Chainalysis offers a suite of risk management software to banks

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.

[Sponsored] Samsung Galaxy S24: The Ultimate Camera Phone With Smarter On-Device AI

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.

Warner Music Inks Deal With Splinterlands to Work on Arcade-Style Games

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."

Do Samsung's Galaxy S22 and Tab S8 series have any Android competition? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.