BNY Mellon approved for crypto custody, Visa helps banks tokenize, and crypto ETPs see over $1B in flows

Crypto markets had a strong month of September, driven by central bank easing, renewed interest in spot ETFs and other factors. Last week, the Nasdaq Crypto Index™ (NCI™) rose 5%, led by Solana (SOL), which gained 9.4%, Bitcoin (BTC), which climbed 4.6%, and Ether (ETH), which saw an increase of 3.5%.

BNY Mellon approved for crypto custody beyond ETFs

The US bank is developing a framework to offer digital asset custody services beyond BTC and ETH ETFs and SEC Chairman Gary Gensler granted a ”non-objection” to the plan, ensuring the protection of customer funds in the event of the bank’s insolvency. This initiative is relevant for crypto investors as it provides another secure and regulated option for the custody of crypto assets, increasing confidence in an environment known for its volatility. The presence of large financial institutions like BNY can bring more liquidity and legitimacy to the market, making digital assets more attractive to a broader audience.

Visa to help banks test tokenized assets and smart contracts

Visa has launched a platform to help banks test tokenized assets using smart contracts, allowing them to issue fiat-backed tokens in a regulated manner. This aims to modernize the financial system and ease banks’ adaptation to the digital market, with institutions like Banco Bilbao Vizcaya Argentaria already using the platform. This initiative is relevant for crypto investors as it shows that major companies are adopting blockchain technology, which could boost institutional confidence, improve liquidity, and drive greater acceptance of crypto assets in the mainstream market.

Crypto ETPs See More than $1.2 billion in Flows of Inflows Last Week

Regulated BTC investment products attracted over $1 billion in inflows last week, driven by the recovery of BTC’s price to $66,000. In total, crypto asset investment products recorded $1.2 billion in inflows, with BTC products accounting for approximately 87% of that amount. Additionally, ETH products ended a five-week streak of outflows, accumulating $87 million in inflows. The increase in capital reflects expectations of a more dovish monetary policy in the US and optimistic sentiment among investors.