Despite the fact that the majority of the crypto market is down 60% from all-time highs, Michael Demissie believes the digital asset business is here to stay.
The head of digital assets at Bank of New York Mellon (BNY Mellon), Michael Demissie, is convinced that the bitcoin market fall in 2022 would not deter institutional interest in digital assets.
Demissie stated on February 8 at an Afore Consulting conference that the digital asset business is “here to stay” since institutional investors are interested in crypto.
“What we observe is that clients are very interested in digital assets in general,” he added, according to a Reuters article on Feb. 8.
Demissie supported his claims by citing a BNY Mellon poll done in October, which revealed that 91% of custodial bank clients are interested in investing in blockchain-based tokenized goods.
The poll also discovered that 86% of institutional participants use a “buy and hold” approach, implying that they view the bitcoin market as a long-term investment.
88% of those polled also stated that the catastrophic bitcoin market downturn in 2022 has not affected their long-term ambitions to invest in the digital asset industry.
Demissie did, however, emphasize that more work needed to be done in Washington D.C. so that business participants could go forward with greater regulatory certainty.
“We absolutely need clear regulation and rules for the road. We need responsible actors who can offer reliable services that live up to investors trust.”
“It’s critical that we manage this place responsibly,” he continued.
Caroline Butler was named CEO of Digital Assets at BNY Mellon on February 2 to assist drive the next wave of adoption for the bank’s clients.
The hiring comes after BNY Mellon established its own digital custody platform in October, allowing chosen institutional clients to invest in Bitcoin (BTC) and Ether (ETH) (ETH).
Previously, in February2022, BNY Mellon announced a collaboration with on-chain measurement platform Chainalysis to aid in the tracking and analysis of bitcoin goods.
BNY Mellon isn’t the only major bank making inroads into the digital asset business recently.
After FTX’s dramatic collapse in November, Goldman Sachs reportedly indicated interest in purchasing cryptocurrency startups.
While JPMorgan CEO Jamie Dimon is not a fan of Bitcoin, his company has recently experimented with blockchain-based services. In November, the company completed its first-ever cross-border transaction on a public blockchain utilizing decentralized financing.