NEW YORK — BNY Mellon CEO Robin Vince declared that the next phase of crypto adoption will depend on large financial institutions, pushing back against the idea that decentralized finance will bypass incumbents.
“We can act as a very effective bridge between the traditional finance and the digital finance ecosystems,” Vince said at the Digital Asset Summit on Tuesday. BNY was among the first major custodians to offer digital asset custody; Vince framed it as part of a broader pattern of tech adaptation. “We are a firm that’s grown up with a whole bunch of different technologies.”
Banks as 'Adoption Vehicles,' Not Disruptees
Vince directly challenged the notion that crypto will sidestep established banks. “A technology that’s in search of adopters can sometimes struggle, but we are an adoption vehicle,” he said, pointing to BNY's client base and infrastructure. Digital asset providers see the bank as a gateway to traditional markets: “You can actually be a bridge to us through all the traditional things that you do.”
Tokenization: Starting with 'Clunky' Loans and Real Estate
Vince highlighted tokenization as a key focus area. BNY has created digital tokens and new share classes for money market funds, issuing existing funds in tokenized form to drive adoption. Near term, he expects tokenization to fix systems that are currently inefficient. “Loans are clunky. Real estate's clunky,” he said, suggesting these markets could be first to benefit.
‘Need Clarity and Rules of the Road’
Regulation remains a critical variable. “We need clarity and rules of the road,” Vince said. “That hesitancy slows adoption.” In the U.S., the stablecoin-focused GENIUS Act has passed, but a revised Digital Asset Market Clarity Act is still in flux after closed-door discussions on Capitol Hill. Early industry feedback points to unresolved language on stablecoin yield—a compromise allows rewards tied to user activity but not interest on balances, reflecting tensions between banks and crypto firms.
Safety and oversight are paramount 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 warned. Yet he cautioned change will take time. “This will be a 5, 10, 15 year journey,” requiring advances in technology, regulation and market participation. “It’s all of the above. That shouldn’t stop us from getting excited about getting going.”