NEW YORK — BNY Mellon CEO Robin Vince says the next phase of cryptocurrency adoption will depend on large financial institutions, arguing that banks are well-positioned to connect digital assets to the broader financial system.
“We can serve as a very effective bridge between traditional finance and the digital finance ecosystem,” Vince said during a conversation at the Digital Asset Summit in New York on Tuesday.
His comments come as the long-established bank is expanding its role in digital assets after years of caution. BNY Mellon was one of the first major custodians to offer custody services for digital assets, a move Vince sees as part of a long-term model for embracing new technologies. “We are a company that has grown on a lot of different technologies,” he said.
Rather than seeing decentralized finance as a replacement for banks, Vince pushed back against the idea that cryptocurrencies will bypass existing institutions. “Finding adopters for technology can sometimes be difficult, but we are adopters,” he said, pointing to the bank’s existing customer base and infrastructure.
This positioning allows the company to support both sides of the market. “They looked at us and said … you can actually be a bridge to our digital asset providers through all the traditional things you do,” Vince said.
He highlighted tokenization as a key area of focus, including efforts to create digital versions of traditional products. “We have created digital tokens, new share classes for money market funds,” he said, describing how existing funds could be issued in tokenized form to encourage adoption.
In the short term, he expects adoption to focus on areas where current systems fall short. “Lending is clunky. Real estate is clunky,” he said, suggesting these markets may be the first to benefit from tokenization.
“Needs clarification”
Nonetheless, Vince stressed that trust and regulation will determine how quickly the industry grows. “We need clear rules of the road,” he said. “This hesitancy will slow adoption.”
His comments come as lawmakers work to establish a regulatory framework for institutional investors to safely invest in the digital asset space.
In the United States, while the stablecoin-focused Genius Act has passed, a revised version of the Digital Asset Market Clarity Act remains in flux after lawmakers shared updated language with industry players in closed-door meetings on Capitol Hill this week as they try to clear the way for a Senate Banking Committee hearing.
Early feedback from crypto insiders suggests the draft’s approach to stablecoin yields remains a sticking point, with its language described as narrow and unclear. The latest compromise, prompted in part by pressure from banks, would allow rewards to be tied to user activity but not interest on stablecoin balances, reflecting ongoing tensions between the cryptocurrency industry and traditional lenders over how to treat such products.
Vince added that safety and oversight remain critical to agency participation. “If this was the Wild West … 90 percent of the people in the financial services community … want nothing to do with it,” Vince said.
Even so, Vince warns, change takes time. “This will be a five-, 10-, 15-year journey,” he said, adding that progress would depend on advances in technology, regulation and market participation.
“All of the above,” Vince said. “That shouldn’t stop us from being excited about getting started.”