BNY Mellon to Integrate Chainalysis’ Complience Software

The Bank of New York (BNY) Mellon has partnered with Chainalysis to utilize its crypto compliance software as part of the bank’s risk management program, Chainalysis said in a press release on 23 February.

According to the announcement, the Chainalysis partnership will help BNY Mellon — the world’s largest custodian bank, overseeing almost $47 trillion in assets — launch cryptocurrency services to its clients. As part of the partnership, the bank will integrate the full Chainalysis compliance software suit, enabling it to track, record, and make use of data connected to crypto assets. The head of global custody, tax and network management at BNY Mellon, Caroline Butler, said in a statement:

“BNY Mellon enters the digital asset market as the most trusted asset servicer in the space. Working with Chainalysis and other leading 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.”

The bank will now be able to utilize Chainalysis’ risk management software suit, which includes the Know Your Transaction (KYT), Reactor, and Kryptos software. The KYT flagging system is arguably the most important, as it can automatically detect whether a transactions is “high risk”, and even block transactions to sanctioned wallet addresses. The Reactor investigative tool will provide the bank with a “deeper due diligence” into suspicious activities, while Kryptos offers data about specific cryptocurrency entities, such as exchanges and their on-chain activities.

BNY Mellon began its push into the crypto market back in February 2021, when it revealed its plans to hold, transfer and issue Bitcoin and other cryptocurrencies as an asset manager on behalf of its clients. The bank later chose Fireblocks to become of the fintechs to help it develop a “multi-asset digital custody platform”.