NEW YORK — BNY Mellon CEO Robin Vince said the next phase of crypto adoption will depend on large financial institutions, arguing that banks are well-positioned to connect digital assets to the broader financial system.
“We can act as a very effective bridge between the traditional finance and digital finance ecosystems,” Vince said in a conversation at the Digital Asset Summit in New York on Tuesday.
His comments come as long-established banks expand their role in digital assets after years of caution. BNY Mellon was one of the first large custodians to offer custody of digital assets, and Vince framed this move as part of a longer model of adopting new technologies. “We’re a company that grew up with a whole bunch of different technologies,” he said.
Rather than seeing decentralized finance as a replacement for banks, Vince pushed back against the idea that crypto would bypass incumbents. “A technology that seeks followers can sometimes struggle, but we are a vehicle for adoption,” he said, pointing to the bank’s existing customer base and infrastructure.
This positioning allows the company to support both sides of the market. “They’re turning to us and saying… you can actually be a bridge to us, the digital asset providers, through all the traditional things that you do,” Vince said.
He highlighted tokenization as a key area of interest, including work to create digital versions of traditional products. “We created digital tokens, new share classes for money market funds,” he said, describing how existing funds can be issued in tokenized form to encourage adoption.
In the short term, he expects adoption to focus on areas where current systems fall short. “Lending is clunky. Real estate is clunky,” he said, suggesting these markets could benefit first from tokenization.
“Need for clarity”
Vince nevertheless stressed that trust and regulation will determine how quickly the sector grows. “We need clarity and rules of conduct,” he said. “This hesitation slows adoption.”
His comments come as lawmakers work to establish a regulatory framework for institutional investors to safely invest in the digital assets sector.
In the United States, although the stablecoin-focused GENIUS Act has passed, a revised version of the Digital Assets Market Clarity Act is still in the works after lawmakers shared updated language with industry participants in a closed-door session on Capitol Hill this week, as they try to pave the way for a Senate Banking Committee hearing.
Early comments from crypto insiders suggest the project’s approach to stable coin yield remains a sticking point, with language described as narrow and unclear. The latest compromise, shaped in part by pressure from banks, would allow rewards tied to user activity but not interest on stablecoin balances, reflecting ongoing tensions between the crypto industry and traditional lenders over how such products should be treated.
Vince added that security and oversight remain essential to institutional participation. “If this is the Wild West…the 90% of the financial services community…wants nothing to do with it,” Vince said.
However, Vince warned that change would take time. “It will be a 5, 10, 15 year journey,” he said, adding that progress will depend on technological advances, regulation and market participation.
“It’s all of the above,” Vince said. “That shouldn’t stop us from being excited to get started.”
