BNY Mellon will become the first global systemically important bank (GSIB) to implement blockchain firm Chainalysis’ compliance software as part of its risk management programme.
The integration with Chainalysis tech forms part of BNY Mellon’s new client-facing crypto strategy
The deployment of the Chainalysis KYT (Know Your Transaction), Reactor, and Kryptos software by the world’s largest asset servicer is but one part of BNY Mellon’s client-facing cryptocurrency strategy.
BNY Mellon’s global head of custody, tax and network management, Caroline Butler, says: “Working with Chainalysis and other 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.”
Announced a year ago, BNY Mellon says it is building a multi-asset digital custody and admin platform for traditional and digital assets — an industry first.
The financial services giant says Chainalysis’ compliance software will keep an eye on crypto trends, as well as the nitty gritty of real-time transaction monitoring, in order to detect high-risk activity.
Other aspects of the risk management software provide deep due diligence into suspicious activity, while another component monitors transaction volumes, counterparties and benchmarking, giving financial institutions the necessary compliance framework data.
Chainalysis chief strategy officer Jonathan Levin says: “Chainalysis has always believed that financial institutions are critical to the overall growth and success of the cryptocurrency industry.”
The New York-headquartered blockchain firm provides data, software, services, and research to government agencies, exchanges, financial institutions, and insurance and cybersecurity companies in more than 60 countries.
In June last year, Chainalysis secured a $100 million Series E financing round led by Coatue, taking its total valuation up to $4.2 billion.
