Chainalysis, a world-renowned blockchain data, analysis, and research provider for government parastatals and businesses will be partnering with BNY Mellon (Bank of New York) to manage its digital assets. Chainalysis made this revelation in a Blog Post in which it detailed its plans to help BNY Mellon enhance its risk management program and other crypto-focused services.
The relationship between the two companies will ensure that the crypto data services provider helps the New York-headquartered bank in inculcating a compliance software system, which will enable the global asset custodian in attaining one of its core business objectives bordering on a functional risk management program.
This news was also confirmed on the official Twitter account of the global custodian bank. The statement reads,
“We’re thrilled to be the first Global Systemically Important Bank with plans to utilize @chainalysis’s risk management software as a component of our strategy to develop cryptocurrency services for our clients.”
Earlier this month, the Bank of New York Mellon announced that it is actualizing its plans to delve into the management of virtual assets, sighting that this new initiative will help its clients in addressing the ever-increasing need that is related to the expansion of the blockchain market. In line with this move, a digital assets unit was created for this purpose.
Further in this announcement, the risk management kit will include the following Chainalysis software; Know Your Transaction (KYT), Kryptos, and Reactor. All this softwares will be used in verifying if a transaction is deemed either low risk or high risk, hence ensuring that investors are protected from potential hackers or cybercriminals.
The KYT program ensures that all transactions are observed to detect activities that are high risk. The Reactor provides investigation for potential suspicious activities. While the Krypto helps to simplify incoherent data, transforming it into viable and useful information.
Commenting on this partnership, the Global Head, Custody, Tax and Network management of the internationally renowned bank, Caroline Butler said that the financial institution ventured into digital asset management as “the most trusted asset servicer in the space”, adding that, partnering with Chainalysis is basic to their role as a ”trusted innovator.”
Amidst a growing uncertainty in key financial markets fueling recommendations such as were made to the Reserve Bank of India last week as to banning Bitcoin (BTC), BNY Mellon is choosing to look aside and onboard the initiatives to oversee the management of digital assets. The bank’s move follows a related trend of global banks migrating from the traditional way of doing business to embracing blockchain-backed financial technology.