Key Points:
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BNY CEO says banks act as bridge between crypto and TradFi.
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Firm positions itself as adoption vehicle for digital asset providers.
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CEO warns unclear rules keep most financial firms on sidelines.
The future of cryptocurrency relies heavily on major financial institutions stepping into the market.
Speaking at the Digital Asset Summit in New York on Tuesday, BNY CEO Robin Vince explained that legacy banks are perfectly positioned to connect digital assets with the broader economy.
"We can act as a very effective bridge between the traditional finance and the digital finance ecosystems,"Vince said.
Rather than allowing decentralized finance to replace traditional banking, Vince believes large firms will drive the technology forward.
He noted that BNY , one of the first major custodians to offer digital asset custody, has a long history of embracing innovation.
"We are a firm that's grown up with a whole bunch of different technologies,"he stated.
Because of their established infrastructure, banks serve as vital partners.
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"A technology that's in search of adopters can sometimes struggle, but we are an adoption vehicle," Vince said. He added that digital asset providers recognize this value.
"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.
Targeting clunky markets
Vince sees tokenization—creating digital versions of traditional financial products—as a major growth area.
He explained that BNY is already exploring this space. "We've created digital tokens , new share classes for money market funds," he noted.
Looking ahead, Vince expects digital tokens to first disrupt inefficient markets. "Loans are clunky. Real estate's clunky," he said, pointing to these sectors as prime candidates for upgrades.
Despite his optimism, Vince emphasized that the industry desperately needs proper regulation. "We need clarity and rules of the road," he said. "That hesitancy slows adoption."
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Lawmakers are currently trying to create safe frameworks for institutional investors. While the stablecoin-focused GENIUS Act has passed in the U.S., the revised Digital Asset Market Clarity Act remains stalled.
This week, lawmakers held a closed-door session on Capitol Hill to share updated language with industry insiders, hoping to secure a Senate Banking Committee hearing.
A major disagreement involves stablecoin yields. Driven partly by pressure from traditional banks, the current draft allows rewards based on user activity but bans interest on stablecoin balances.
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Vince warned that without strict oversight, mainstream financial services will stay away.
"If it's the Wild West… the 90% of the financial services community… don't want to have anything to do with it,"he said.
Ultimately, Vince views this transition as a "5, 10, 15 year journey" that requires technological and regulatory progress.
Related: Morgan Stanley-backed crypto stock gets 86% upside rating
This story was originally published by TheStreet on Mar 26, 2026, where it first appeared in the Banking section. Add TheStreet as a Preferred Source by clicking here.
