BNY Mellon signed a five-year digital asset custody agreement with the Invesco Galaxy Bitcoin ETF, effective November 6, according to a November 12 SEC filing. The agreement expands the Wall Street banking giant's role from cash custodian to direct safeguarding of cryptocurrency for institutional investment products. BNY Mellon will establish segregated accounts for the ETF's Bitcoin holdings while Invesco Galaxy retains Coinbase Custody Trust Company as an additional custodian. The arrangement reflects traditional banks' expanding infrastructure for holding digital assets alongside conventional securities.
BNY Mellon Joins Coinbase as Invesco Bitcoin ETF Custodian
The Invesco Galaxy Bitcoin ETF, trading under BTCO on Cboe BZX, will use both BNY Mellon and Coinbase Custody Trust Company for safeguarding its Bitcoin. The SEC filing explicitly states that the existing Coinbase arrangement remains unaffected by the new agreement.
BNY will establish and maintain segregated digital asset accounts under its control, with contractual requirements covering safekeeping, insurance and standards of care. The initial agreement runs for five years, followed by automatic one-year renewals unless either party provides notice or the contract ends earlier.
Previously, BNY served as BTCO's cash custodian while Coinbase handled the underlying cryptocurrency. The new agreement expands BNY's responsibilities beyond traditional fund operations. Invesco has not disclosed how much Bitcoin will be allocated to BNY or whether any assets have already been transferred.
BNY Mellon Expands Into Bitcoin, Ethereum and Solana Custody
Separate SEC filings confirm that Invesco Galaxy's Ethereum ETF, QETH, and Solana ETF, QSOL, also entered digital asset custody agreements with BNY Mellon on November 6. Both filings preserve existing Coinbase custody relationships, suggesting a wider multichain strategy rather than a single Bitcoin partnership.
The expansion follows BNY's recent institutional XRP and RLUSD custody launch. The Invesco agreements explicitly establish BNY as a custodian of the underlying cryptocurrencies, going further than previous arrangements where BNY handled only administrative infrastructure while Coinbase managed digital asset custody.
What Does BNY Mellon's Deal Mean for Coinbase
Coinbase remains a significant participant in institutional digital asset custody, but traditional banks are increasingly offering competing infrastructure. The new agreements arrive shortly after Coinbase's national trust charter took effect, strengthening its own position in regulated institutional services.
The contracts do not establish that Coinbase has lost existing customer assets or that BNY has displaced it as the principal custodian. Additional custodians can provide institutional clients with operational flexibility and alternatives for managing custody exposure.
FAQ
What did BNY Mellon announce on November 6?
BNY Mellon entered a five-year digital asset custody agreement with the Invesco Galaxy Bitcoin ETF, effective November 6 according to a November 12 SEC filing. The agreement allows BNY Mellon to establish segregated accounts for the ETF's Bitcoin holdings with contractual requirements covering safekeeping, insurance and standards of care.
Does the BNY Mellon agreement replace Coinbase as custodian?
No. The SEC filing explicitly states that the existing Coinbase Custody Trust Company arrangement remains unaffected by the new agreement. The Invesco Galaxy Bitcoin ETF will use both BNY Mellon and Coinbase for safeguarding its Bitcoin.
What other cryptocurrencies does BNY Mellon custody for Invesco Galaxy?
Separate SEC filings confirm that Invesco Galaxy's Ethereum ETF (QETH) and Solana ETF (QSOL) also entered digital asset custody agreements with BNY Mellon on November 6. Both filings preserve existing Coinbase custody relationships.
