New York Mellon Bank is about to launch Bitcoin and Ethereum ETF custody services

Odaily Planet Daily reports that The Bank of New York Mellon (BNY) is about to provide Bitcoin and Ethereum custody services for its ETF clients. Previously, the U.S. SEC decided after review that BNY does not need to comply with the controversial crypto asset accounting rule SAB 121.

The bank stated in a statement on Tuesday that earlier this year, the Office of the Chief Accountant of the U.S. SEC conducted a review and did not object to its decision, namely, protecting crypto assets for its regulated ETF clients should not be confirmed on BNY's balance sheet. In recent months, the Office of Chief Accountant has raised no objections to some other financial institutions.

"Some broker-dealers and custodian banks have fully demonstrated to SEC staff that their factual patterns are different from those described in SAB 121," an SEC spokesperson said. The SEC stated that these companies still need to ensure that even in bankruptcy situations, customers still own all assets.

"In this case, as long as their customers receive protection equivalent to custody arrangements in terms of crypto asset protection, their balance sheet treatment is also identical with custody arrangements," added by SEC.(Bloomberg)