🧠 Food for thought

Implications, context, and why it matters.

BNY is moving into a more mature digital asset rulebook in Abu Dhabi

• Abu Dhabi Global Market (ADGM), the financial center where BNY is expanding digital asset custody, set up a virtual asset framework in 2018 with an institutional focus 1.
• That rule set covers many activities. Ocorian, a corporate and fund services provider, says it is built for institutions, while Dubai’s mainland regulator, the Virtual Assets Regulatory Authority (VARA), is aimed more at retail markets and is still developing 1.
• The step fits BNY’s wider plan, which centers on distributed ledger technology, tokenization, and infrastructure upgrades rather than crypto speculation 2.
• BNY has launched a tokenized deposit service for near real-time, 24/7 settlement. It is also working with Goldman Sachs Digital Assets, the bank’s digital assets business, on a tokenized money market funds product 34.

BNY is pushing past crypto trading and toward market plumbing

• The offering starts with bitcoin and ether. The larger aim is custody, related services, and support for tokenization and digital cash 2.
• It offers a regulated link for institutional investors exploring tokenized assets. The “91%” figure comes from an October 2022 study sponsored by BNY Mellon, not a marketwide measure 2.
• As a global systemically important bank (G-SIB), a label for banks whose distress could ripple through the financial system, BNY says its platform includes bankruptcy stay protection and integrated reporting 5.
• That setup could let tokenized assets such as money market fund shares serve as collateral through mirrored record tokenization. It could also help markets operate around the clock with less friction 4.