Despite most of the crypto market being down 60% from all-time highs, Michael Demissie says the digital asset industry isn’t going anywhere.
Michael Demissie, Head of Digital Assets at the Bank of New York Mellon (BNY Mellon), is convinced that the 2022 cryptocurrency market crash will not shake institutional interest in digital assets.
In a conference hosted by Afore Consulting on Feb. 8, Demissie said that the digital asset industry is “here to stay” according to institutional investors with a strong interest in crypto.
“What we’re seeing is that consumers are very interested in digital assets, very specific,” he said, according to a Feb. 8 Reuters report.
Demissie supported his opinion by referring to a survey conducted by BNY Mellon in October, which found that 91% of the bank’s customers are interested in investing in tokenized products based on blockchain. The survey also showed that 86% of industry players follow a “buy and hold” strategy, which can say that they view cryptocurrency trading as a long-term game.
Of those surveyed, 88% also said that the big fall in the cryptocurrency market in 2022 has not changed their plans for investing in the digital sector in particular in the long term. Demissie, however, said that more work will be done in Washington DC so that the industry players can continue to be transparent in the legal system.
“We really need clear rules and regulations for the roads. We need players with a service that can provide reliable services that investors trust. “
“It’s important that we navigate this space in the right way,” he added.
On Feb. 2, BNY Mellon announced the appointment of Caroline Butler as director of digital assets to help drive further adoption for the bank’s clients.
Butler is the former director of the Child Welfare Services. The appointment comes as BNY Mellon launched its own digital holding system in October, allowing selected institutional clients to invest in Bitcoin (BTC) and Ether (ETH).
Previously, in February 2022, BNY Mellon announced a partnership with the on-chain metrics platform Chainalysis to help track and analyze cryptocurrency products. BNY Mellon isn’t the only big bank making progress in the digital asset industry recently.
Goldman Sachs has shown interest in buying cryptocurrency companies after the FTX disaster struck many of them in November. Although JPMorgan CEO Jamie Dimon is not a fan of Bitcoin, his company has recently entered into blockchain-based projects. In November, the company completed its first large-scale transaction using a virtual currency on the public blockchain.
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