To explain, Mr. Market priced BNY Mellon (BK) reasonably at $55.22 on 31 August 2021. Yet, The Bank of New York Mellon (BK) offers enormous value. For example, Mellon had $198.061 billion in cash and short-term investments on 30 June 2021. Additionally, BNY had $466.963 billion in Total Assets on 30 June 2021.Read more
I think Buffett buys BNY Mellon because it offers enormous amounts of cash and value for a cheap price.Read more
With or without the FinCEN scandal, Mellon can generate enormous amounts of cash.Read more
I think the hedge fund managers are buying BNY Mellon because they want companies with lots of cash. I suspect hedge fund bosses want cash-rich companies because they think a market correction or market turbulence is imminent.Read more
Intriguingly, Frank Fehrenbach; Mellon’s Senior Principal for Digital Partnerships, proposes the fractional tokenization of the property rights to big-ticket items like art works.Read more
The hope is to offer cold storage for up to $20 billion worth of cryptocurrency. Cryptocurrency exchanges and brokers want cold storage because custodians would take the problems and liabilities associated with storage.
For example, many exchanges and brokers have a hard time getting insurance for stored assets. However, established custodians like BNY Mellon already have such insurance.
On the positive side, all that is standing between companies and BNY Mellon and cryptocurrency storage is SEC approval. On the negative side, the cryptocurrency market has dropped dramatically in recent weeks losing up to 80% of its value.
The cryptocurrency market is certainly huge, BNY Mellon estimates that there are 1,000 cryptocurrencies with a market capitalization of $400 billion. On the other hand, US equities have a market capitalization of $25 trillion.
Therefore, cryptocurrency is a small portion of the global economy. However, cryptocurrency is growing fast.Read more
Obviously a lot of people will be scared by the USC, because it sounds as if the bankers know something about the world’s financial system we do not. One cynical view might be that bankers fear the current system might collapse so they are quietly building an alternative.Read more
Bank of New York Mellon is not just a bank with offices in Manhattan it is a FinTech play. BNY Mellon is one of four major banks developing the Utility Settlement Coin or USC, with the technology companies Icap and Clearmatics, Crowdfund Insider reported.Read more