As per the latest reports, Bank of New York Mellon (BNY Mellon) and State Street, another bank based in the United States have made an announcement for their clients. The firms have announced that they have taken the initiative of venturing into the cryptocurrency industry.

The firms have announced that they have taken the initiative by offering custody support to the cryptocurrency community through a new cryptocurrency exchange. The reports reveal that both firms, BNY Mellon and the State Street Bank would be providing support and backing to the new cryptocurrency exchange.

The news around both firms taking the initiative in the cryptocurrency industry was made by Financial Times on Wednesday, July 21, 2021. The report from the Financial Times reveals that BNY Mellon has joined hands with six banks, forming a consortium.

Following the formation of the consortium, the respective banks have backed up Pure Digital, a new cryptocurrency exchange that is based in London. The report also reveals that the new cryptocurrency trading platform is set to initiate its future trades through Bitcoin (BTC).

The first time the cryptocurrency exchange, Pure Digital earned the spotlight was back in April of 2021. It gained attention when State Street Bank made an announcement in regards to providing support to the exchange.

At that time, the State Street Bank had revealed that it was going to provide Pure Digital with its own infrastructure for trading purposes. The firm had revealed that it was not going to provide the exchange with the infrastructure directly.

Instead, the State Street Bank was going to provide its infrastructure to Pure Digital through Currenex, which is its foreign exchange technology subsidiary.

Once the platform is launched, it would act as an institutional-grade platform for cryptocurrency trading among users. The platform would also provide users with an over-the-counter cryptocurrency market, which would be fully automated.

Furthermore, the platform would also offer users services such as bank custody and physical delivery. This would make the platform more suitable for institutional users, helping them become more used to the cryptocurrency industry. This way, the firms would be able to bring more exposure to the cryptocurrency industry.

The sources reveal that State Street and BNY Mellon are not the only banks backing Pure Digital. Other banks whose names are still unknown are also providing support to Pure Digital in providing its services to more users.

The platform is also aiming to compete against other major firms in the cryptocurrency trading industry by offering their own cryptocurrency trading venue, backed by cash.

Lauren Kiley, the CEO at Pure Digital has also spoken about their collaboration with several banks. He stated that they have discussed their venture with several banks considered top-tier. So far, only the custody banks have shown interest in supporting the exchange as they are observing demand for their products.