BNY Mellon to invest in a cryptocurrency startup Fireblocks

Bank of New York Mellon has invested in Fireblocks, a company that creates tools for the encrypted storage and distribution of bitcoin and other cryptocurrencies, to embrace digital currency.

According to Fireblocks, BNY Mellon's investment was part of a $133 million funding round that also included hedge fund Coatue Management, investment firm Ribbit Capital, growth equity firm Stripes, and SVB Capital, Reuters reported. 

BNY Mellon intends to use Fireblocks' technology to support a new business that the bank announced last month, in which it will act as a custodian for digital assets on behalf of institutional investors.

Fireblocks was founded in 2018 by former Israeli military intelligence officers. According to a source familiar with the matter, the Series C financing round values the company at more than $900 million. Fireblocks has raised a total of $179 million, following the latest round, WSJ reported.  

BNY Mellon's cash infusion comes after the bank announced last month that it had formed a new unit to support clients retain, move, and issue digital currency, joining the scramble by top-tier financial services companies to gamble on digital currencies such as bitcoin.

Meanwhile, Bitcoin reached its all-time high of $61,781.83 on Saturday.

Bitcoin, the world's biggest blockchain by market capitalization, has received the most inflows this year, totaling $3.3 billion, while Ethereum came in second with $731 million.

The other financial institutes like Mastercard and BlackRock also backed some digital currencies. Morgan Stanley became the first large U.S. bank to give its wealth management customers access to bitcoin funds on Wednesday.

Aside from BNY Mellon, the Fireblock has also joined hands with five other global banks.