NEW YORK — BNY Mellon CEO Robin Vince said the next phase of crypto adoption will depend on large financial institutions, arguing that banks are positioned to connect digital assets with the broader financial system.
“We can act as a very effective bridge between the traditional finance and the digital finance ecosystems,” Vince said during 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 among the first major custodians to offer digital asset custody, and Vince framed that move as part of a longer pattern of adopting new technologies. “We are a firm that’s grown up with a whole bunch of different technologies,” he said.
Rather than viewing decentralized finance as a replacement for banks, Vince pushed back on the idea that crypto will bypass incumbents. “A technology that’s in search of adopters can sometimes struggle, but we are an adoption vehicle,” he said, pointing to the bank’s existing client base and infrastructure.
That positioning allows the firm to support both sides of the market. “They look to us and say… 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 focus, including work to create digital versions of traditional products. “We’ve 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 near term, he expects adoption to focus on areas where current systems fall short. “Loans are clunky. Real estate’s clunky,” he said, suggesting those markets may benefit first from tokenization.
‘Need clarity’
Still, Vince stressed that trust and regulation will shape how quickly the sector grows. “We need clarity and rules of the road,” he said. “That hesitancy slows adoption.”
His comments come as lawmakers are working to establish a regulatory framework for institutional investors to safely invest in the digital assets sector.
In the U.S., while the stablecoin-focused GENIUS Act has passed, a revised version of the Digital Asset Market Clarity Act is still in flux after lawmakers shared updated language with industry participants in a closed-door session on Capitol Hill this week, as they try to clear a path toward a Senate Banking Committee hearing.
Early feedback from crypto insiders suggests the draft’s approach to stablecoin 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 tension between the crypto industry and traditional lenders over how such products should be treated.
Vince added that safety and oversight remain critical for institutional participation. “If it’s the Wild West… the 90% of the financial services community… don’t want to have anything to do with it,” Vince said.
Even so, Vince cautioned that change will take time. “This will be a 5, 10, 15 year journey,” he said, adding that progress will depend on advances in technology, regulation and market participation.
“It’s all of the above,” Vince said. “That shouldn’t stop us from getting excited about getting going.”