The Bank of New York (BNY) Mellon reportedly disclosed details related to its freshly formed alliance with blockchain-data platform Chainalysis, for the tracking and analysis of crypto offerings. 

Specifically, BNY Mellon reportedly stands at the top of the list of most major custodian banks globally, keeping oversight on $46.7 trillion in assets at the moment.

Chainalysis reportedly functions as a blockchain-data analysis platform catering to traditional financial institutions, making it possible for large establishments to manage the legal risks associated with crypto, in a simplified manner. 

As included within the scope of the alliance, BNY is reportedly going to take advantage of Chainalysis software to track, record and utilize the data related to crypto assets.

The risk management software offered by Chainalysis includes KYT (Know Your Transaction), Reactor and Kryptos, with the KYT flagging system having the most crucial role – which is able to detect if cryptocurrency transfers are viewed as high risks, in an automatic manner. 

If the KYT software sees crypto being transferred to a sanctioned wallet address it can preemptively block the transaction. Reactor equips companies with more freedom in terms of investigation regarding the blockchain, while  Kryptos gathers and translates complex data into cogent information for institutions.

“At BNY Mellon, we enter the digital asset market with the title of the most trusted asset service provider. Working with Chainalysis and other leading fintech companies, we are developing our capabilities in the growing cryptocurrency industry and reflecting this in our products.” Caroline Butler, head of global custody, tax and network management at BNY Mellon, further emphasized how important trust is, upon the presence of the bank in the crypto sphere.