BNY Mellon to Hire Fireblocks on New Bitcoin Custody Service

Though Fireblocks and BNY have refused to comment on the new partnership, sources revealed that Fireblocks and BNY Mellon have been working together for a long time.

BNY Mellon (NYSE: BK) is planning to work with digital asset firm Fireblocks on its new Bitcoin custody services. Now, Fireblocks will be on board as BNY Mellon executes its plan to hold Bitcoin and other cryptocurrency assets on behalf of clients.

According to a CoinDesk report, three familiar sources confirmed that BNY Mellon is working with Fireblocks as the banking giant progresses on its mission to hold digital assets on clients’ behalf.

BNY Mellon and Fireblocks

Earlier this month, BNY Mellon announced plans to hold, issue, and transfer Bitcoin and other crypto-assets for its institutional clients before the end of 2021. At the time of the announcement, BNY Mellon’s head of advanced solutions, Mike Demissie, mentioned the other services the bank ought to offer before the year ends. Demissie said that apart from safekeeping, the bank would also help clients to leverage their assets for collateral. He added that BNY Mellon is also looking at issuing digital assets, like tokenized securities, real estates.”

When BNY Mellon announced its crypto custodian service on the 11th of February, the bank said it would be partnering with other firms without further specifications.

BNY Mellon has been recording gains over the past year. The banking giant has increased 5.15% in the last year and over 3% in its year-to-date record. Also, the bank has grown 7.47% in the last three months and nearly 6% over the past month. In the last five days, BNY Mellon has jumped over 2%.

Though Fireblocks and BNY have refused to comment on the new partnership, sources revealed that Fireblocks and BNY Mellon have been working together for a long time.

Fireblocks to Complete Another Financing Round

In addition, two reliable sources confirmed that Fireblocks is about to conclude a funding round. Upon successful financing round, it would be an addition to the $30 million raised from its Series B funding round in November.

Following the November funding, Fireblocks said in a press release that the Series B round would allow the firm to expand its operations worldwide. The firm also said the Series B would allow the digital asset firm to meet “institutional and retail market demand for digital assets.”

Participants of the funding round include Cyberstarts, Tenaya Capital, and Galaxy Digital. The financing was led by Paradigm. As part of the deal, Paradigm co-founder and managing partner Fred Ehrsam also joined Fireblocks’ board of directors.

Speaking on the new partnership with Fireblocks, Ehrsam wrote in an email:

“Everyone from crypto-native funds to large tech companies and banks are integrating Fireblocks because it’s simple. We’re excited to help them cement this market leadership position and support the influx in customer demand as crypto goes mainstream.”

Fireblocks has been recording achievements over time. Apart from the partnership with BNY Mellon, the firm is also providing custody services to Diem, formerly known as Libra. Fireblocks will be working with payment platform First Digital Asset Group to offer connectivity and support to Diem.

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Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.