BNY Mellon is inching closer to providing custody services to its exchange-traded fund clients, Bloomberg has reported.
The development follows a review that allowed the bank to avoid categorizing these services as a liability on its balance sheet.
The review, which was conducted by the SEC earlier this year, did not object to BNY's decision not to recognize crypto asset safeguarding for its regulated exchange-traded product clients on its balance sheet.
BNY has said the SEC has granted them an exemption from SAB 121, which is helping to pave the way for them to offer custody services to clients interested in crypto ETFs.