BNY Mellon (​BK) reported 4th quarter earnings last week (​see the earnings call transcript here, and CEO Robin Vince comments, "BNY has a rich 241-​year history of innovation, from issuing the first loan to the U.​S. government to becoming the first U.​S. GSIB to offer digital asset custody. Our focus on innovating new products and solutions is centered on building trusted market infrastructure for the long term and serving our clients in new and evolving ways, including increasing delivery of new capabilities connecting the traditional and digital asset worlds. This past quarter, for example, we launched the Dreyfus Stablecoin Reserves Fund, a government money market fund designed to support stablecoin issuers and institutional participants to manage eligible reserve assets, providing BNY'​s cash and liquidity solutions expertise to the growing digital payments ecosystem. Our recently announced tokenized AAA CLO strategy in partnership with Securitize brings high-​rated structured credit product onto the blockchain, with BNY serving as sub-​advisor and custodian of the underlying assets. And just last week, we announced that we have taken the first step in our strategy to tokenize deposits by enabling the on-​chain mirrored representation of client deposit balances on our digital assets platform." He also says, "Investment management and performance fees were down 2%, reflecting the mix of AUM flows and lower performance fees, partially offset by higher market values and the weaker dollar. Net interest income was up 15%, primarily driven by the reinvestment of maturing investment securities at higher yields and balance sheet growth, partially offset by deposit margin compression.... Average deposit balances increased by 4% sequentially, reflecting 4% growth in interest-​bearing and 1% growth in non-​interest-​bearing deposits. Average interest-​earning assets were up 3% quarter over quarter. Cash and reverse repo balances increased by 4%, loans increased by 5%, and investment securities portfolio balances increased by 2%." During the Q&​A, BNY was asked about "your newly launched tokenized deposit capabilities and ... institutional demand for the offering." Vince responds, "​We'​re in the business of moving, storing, and managing money. So we think we'​re particularly well-​positioned to connect the traditional and the digital rails to really be able to enable clients. Our roadmap has really been, right from the beginning, focus on the innovation, be able to bring the capabilities online, that first with digital asset custody, stablecoin enablement. You just mentioned the tokenized deposits.... A client might want to open up a new share class in parallel to their traditional share classes. Maybe they want to open up a tokenized share class, we can do that as well. It really is these two things working in concert that we think unlocks new possibilities. We see the value of the improved efficiency, reducing friction that is real value here. When you click in, stablecoins and tokenized deposits are just two examples of all of that. Stablecoins providing the on-​chain settlement currency, which is very necessary and is, frankly, because their stable value probably better than some of the other alternatives."

Your Name:
Your Email:
Recipient Email(s):

Use a comma or a semicolon to separate

Please retype symbols from the image:

Optional Message

Daily Link Archive