The Bank of New York Mellon Corporation

The Bank of New York Mellon Corporation's stock has rallied 35.4% year to date, outperforming the industry's 21.1% rise and the S&P 500 Index's 12.3% growth. Management expects net interest income to increase 12-13% year over year in 2026, and the Zacks Consensus Estimate for revenues implies a year-over-year increase of 11.1% for 2026 and 4.7% for 2027. The company's assets under custody and administration reached $62.6 trillion as of June 30, 2026, up 12% year over year, and it recently announced a strategic collaboration with Galaxy to advance digital asset infrastructure. BNY increased its quarterly cash dividend 19% to 63 cents per share and has a $10 billion share repurchase authorization, with $8.9 billion remaining as of June 30, 2026. The stock carries a Zacks Rank #2 (Buy), and the Zacks Consensus Estimate for 2026 earnings of $9.26 per share has been revised 1.1% upward over the past 30 days.

Citi is preparing to add Bitcoin custody alongside traditional assets as the banking giant builds out its digital asset infrastructure. Announced on Tuesday, the service will be part of Custody+, a suite of custody and settlement tools, allowing clients to access traditional securities and crypto custody through the same framework. The announcement expands on plans Citi revealed in October to launch institutional Bitcoin custody in 2026. Citi said more than 80% of its asset-servicing event volume is now processed in real time, and its Citi Token Services platform allows clients to move tokenized deposits nearly instantly, 24 hours a day, across select markets. The move comes as major banks expand their digital asset businesses, with the New York Stock Exchange working with Citi and BNY on a planned blockchain-based platform supporting tokenized stocks and ETFs, and Morgan Stanley applying for a national trust bank charter for an entity that would offer crypto custody.

Bank of New York Mellon Corporation completed three senior unsecured variable-rate note offerings totaling US$2.50 billion in early August 2026, with maturities in 2030 and 2034, and announced a digital asset custody and staking collaboration with Galaxy Digital Inc. The note issuance strengthens funding flexibility, while the Galaxy Digital partnership extends BNY's digital asset custody platform into staking, integrating with existing services like custody, fund accounting and tax reporting. The collaboration aligns with BNY's push to enhance its NEXEN and digital operating model, which investors see as central to unlocking operating leverage. BNY's narrative projects $24.4 billion revenue and $7.4 billion earnings by 2029, requiring 4.4% yearly revenue growth and a $1.4 billion earnings increase from $6.0 billion today. Simply Wall St community members place BNY's fair value between US$147.50 and US$166.21.

Wells Fargo and The Bank of New York Mellon are expanding their digital asset capabilities beyond traditional crypto custody. Wells Fargo has announced tokenized deposits for corporate clients to enable real-time on-chain payments and settlements, while BNY has partnered with Galaxy Digital to add staking to its Digital Asset Custody platform, subject to regulatory approval. Wells Fargo is also participating in a shared tokenized deposit network with JPMorgan, Bank of America and Citigroup through The Clearing House, aimed at enabling 24/7 blockchain-based payments and cross-border settlements. BNY's collaboration builds on its June 2026 partnership expansion with Circle Internet Group to support USDC on its custody platform. Although these initiatives are unlikely to materially affect near-term financial performance, they demonstrate the banks' commitment to evolving alongside changing market dynamics and could support long-term growth.

Galaxy Digital and BNY have partnered on a crypto staking service for institutional investors. The service integrates staking functionality into BNY's custody infrastructure, allowing clients to earn rewards without moving assets out of custody. As of June 30, 2026, BNY is one of the world's largest custodians, with 62.6 trillion dollars in assets under custody and administration. Through this partnership, BNY expands into staking integrated with fund accounting and tax reporting. Galaxy will provide the staking infrastructure and serve as a design partner for BNY's platform. However, the launch is subject to regulatory approval, and the start date and supported assets have not been disclosed. In the United States, an interpretive letter from the Office of the Comptroller of the Currency in March 2025 permitted banks to engage in crypto custody and node verification, encouraging major banks to enter the space. In contrast, in Japan, banks are restricted from directly conducting crypto asset business, and integrated custody and reward services for institutional investors remain undeveloped.

Influence Media Partners, backed by BlackRock, has agreed to acquire Anthem Entertainment's music publishing catalogs and related assets, including high-profile music and film content. BlackRock is also expected to be involved in BNY's move to a native blockchain-based fund transfer agency platform, extending its role in new market infrastructure. The stock last closed at $1,090.39 and has returned 64.5% over the past three years and 37.3% over the past five years. These moves add fresh context to how BlackRock is using its scale and capital across different parts of the market, combining music intellectual property exposure with early participation in blockchain-based fund services.

BXP has secured a $1.2 billion construction loan for its 343 Madison Avenue development in Midtown Manhattan, a key step in the $2 billion project. The 46-storey tower will offer approximately 930,000 square feet of space with direct access to Grand Central Terminal's Madison Concourse. The loan carries a four-year initial term with a one-year extension option and an initial interest rate of Term SOFR plus 2.50%, which may reduce to 2.25% upon meeting leasing and construction targets. Wells Fargo Bank served as administrative agent, with BofA Securities, The Bank of New York Mellon, and JPMorgan Chase as joint lead arrangers. About 50% of the building is pre-leased, and completion is expected in late 2029.

BNY delivered a record $5.7 billion in total revenue for the second quarter of 2026, up 13% year over year, and raised its full-year outlook. Earnings per share rose 27% to $2.45, with pre-tax margin reaching 40% and return on tangible common equity hitting 31%. CEO Robin Vince highlighted broad-based growth across the firm's diversified businesses, supported by a dynamic market backdrop and the company's new commercial and platform operating models. CFO Dermot McDonogh increased the 2026 total revenue growth forecast to 10% to 11%, with net interest income expected to rise 12% to 13%, and now projects approximately 400 basis points of positive operating leverage for the year. The firm also reported a 14th consecutive quarter of year-over-year sales growth, with average deal size up more than 20% and about 10% of deals coming from entirely new clients.

The Bank of New York Mellon reported record second-quarter revenue of $5.7 billion, up 13% year over year, driven by broad-based growth across its business segments and constructive capital market conditions. Diluted earnings per share rose 27% to $2.45, while net interest income increased 20% to $1.4 billion. Assets under custody and/or administration reached $62.6 trillion, up 12%, and assets under management grew 6% to $2.2 trillion. The company returned $1.5 billion to common shareholders in the quarter and raised its quarterly dividend by 19% to $0.63 per share. Management increased its 2026 total revenue growth outlook to a range of 10% to 11% and now expects full-year net interest income to rise between 12% and 13%.

OpenAI has appointed Bank of New York Mellon CEO Robin Vince and Nubank CEO David Vélez to its for-profit and nonprofit boards. The move brings financial services expertise to the company as it considers an initial public offering as soon as 2027. OpenAI’s board chair Bret Taylor said both leaders have used technology to reshape financial services at global scale. Other board members include Quora CEO Adam D’Angelo, retired US Army General Paul Nakasone, and OpenAI CEO Sam Altman.

Grayscale has filed a registration statement with the U.S. Securities and Exchange Commission for the Grayscale Worldcoin ETF, which will hold the native WLD token of the World Network. The fund aims to have its share value reflect the price of the WLD tokens it holds, minus expenses and liabilities. If launched, the fund will trade on the Nasdaq, with Bank of New York Mellon serving as registrar and transfer agent, and BitGo Bank & Trust as custodian. WLD has a market capitalization of 1.3 billion dollars, ranking as the 57th largest cryptocurrency by market cap. Worldcoin, which has rebranded to World, was co-founded by OpenAI CEO Sam Altman and focuses on identity verification using biometrics and blockchain. This filing marks Grayscale's latest effort to expand its crypto investment products, following the conversion of its Bitcoin Trust into an ETF, the launch of an Ethereum-linked ETF, and applications for funds tied to Dogecoin, Solana, and Chainlink.

PayPal Holdings shares surged 17.2% after a Reuters report said that Stripe and Advent International are planning a $53 billion take-private acquisition of the company. The Progressive Corporation shares plunged 9.4% after reporting second-quarter 2026 revenue of $23.01 billion, missing the Zacks Consensus Estimate by 0.37%. Cintas Corporation shares rose 4.4% after reporting fourth-quarter 2026 earnings of $1.29 per share, beating the Zacks Consensus Estimate of $1.24 per share. The Bank of New York Mellon shares rose 5.1% after reporting second-quarter 2026 earnings of $2.46 per share, beating the Zacks Consensus Estimate of $2.20 per share.

SpaceX shares fell for a fourth straight session, dipping below their $135 initial public offering price for the first time. Apple rose about 4% to a fresh high after its Apple Intelligence cleared a major regulatory hurdle in China, lifting partner shares Alibaba by 5% and Baidu by 2%. Memory stocks pulled back sharply, with Micron, Seagate, and Western Digital each down around 8% and Sandisk tumbling more than 11% on fears of intensifying competition from Chinese chipmaker ChangXin Memory Technologies. Cava gained 5.5% after Morgan Stanley upgraded the fast-casual chain to overweight, calling it one of the strongest fundamental stories in restaurants. Lionsgate jumped more than 6% on a Reuters report that the studio is exploring a sale and has drawn interest from France's Bollore Group and Banijay Group. Progressive fell more than 7% after reporting a 31% drop in June income and a combined ratio rising to 90%, dragging Allstate down 4%, AON down less than 1%, and Travelers down almost 2%. Lucid Group rebounded 19% after denying reports of bankruptcy or take-private talks, saying it has sufficient liquidity into next year. BlackRock jumped more than 7% on better-than-expected adjusted earnings of $13.91 per share versus an LSEG estimate of $12.59. Pentair tumbled more than 17% after preliminary second-quarter adjusted earnings of $1.12 a share missed the $1.48 FactSet consensus. Morgan Stanley edged up after record quarterly revenue and profit, with earnings of $3.46 per share beating the $2.94 estimate. PayPal surged 17% on a Reuters report that Stripe and Advent offered to buy it for $53 billion, or $60.50 per share. Elevance Health fell 10% despite second-quarter revenue above consensus and raised full-year earnings guidance. Bank of New York Mellon rose nearly 3% after an earnings and revenue beat, with double-digit revenue growth now expected in 2026 but higher expenses also forecast.

A slate of major companies including ASML Holding, Johnson & Johnson, Morgan Stanley, BlackRock, Progressive, Bank of New York Mellon, PNC Financial, Elevance Health, Cintas, M&T Bank, First Horizon, and ConAgra Brands are scheduled to report quarterly earnings before the market opens on July 15, 2026. ASML Holding is expected to post earnings per share of $7.98, a 75.38% jump from the prior-year quarter, while Johnson & Johnson's consensus stands at $2.85, up 2.89%. Morgan Stanley's forecast of $2.89 represents a 35.68% increase, and BlackRock is seen reporting $12.72, a 5.56% gain. Progressive faces a 6.15% decline to $4.58, Bank of New York Mellon is projected to rise 13.40% to $2.20, and PNC Financial's estimate of $4.51 marks a 17.14% advance. Elevance Health is expected to drop 30.09% to $6.18, Cintas is forecast to climb 13.76% to $1.24, M&T Bank's $4.66 implies an 8.88% increase, First Horizon's $0.52 is a 15.56% rise, and ConAgra Brands is anticipated to fall 17.86% to $0.46.

SWIFT has announced the initial availability of a blockchain-based shared ledger. Seventeen major global banks are preparing to trial live transactions for cross-border payments using tokenized deposits. The platform will enable regulated banks to move tokenized deposits 24/7, with final settlement occurring through existing payment networks. Participating institutions include Citi, HSBC, BNP Paribas, Standard Chartered, UBS, BNY, Wells Fargo, and DBS. According to SWIFT, 75% of payments on the SWIFT network now reach the recipient bank within 10 minutes, with many arriving in seconds.

Bank of New York Mellon Corporation has entered a new collaboration with Alight Solutions to deliver an integrated retirement solution for defined contribution and defined benefit plans. BNY shares last closed at $152.26, reflecting a 30.09% year-to-date return and a 65.62% one-year total shareholder return. The stock trades at 18.3 times earnings, below the US market average of 19.1 times but above its fair ratio of 16.3 times. A narrative-based fair value estimate places the stock at $150.57, suggesting it is slightly overvalued.

The government-sponsored Trump Accounts savings program for children has officially launched, with the US Treasury seeding $1,000 into each newborn's account. Bank of New York Mellon CEO Robin Vince and Robinhood CEO Vlad Tenev discussed the program, highlighting that there are no account minimums or commissions, and that BNY Mellon will match the government contribution for its employees. Vince noted that if every corporation matched the $1,000, the initial $2,000 could grow to $40,000 over 30 years based on historical market performance, and adding $10 per week could yield $140,000. He also stated that 86% of opened accounts come from households earning less than $200,000, emphasizing the program's role in democratizing investing.

President Donald Trump's administration will launch its flagship investment program, Trump Accounts, on Saturday as the U.S. begins celebrating the 250th anniversary of its independence. The program provides U.S. citizens born between 2025 and 2028 a government-funded investment account of $1,000 that families can build on, aiming to promote investing and financial literacy from an early age. Several top U.S. companies, including Visa, Dell, Comcast, and Micron, have pledged support with employer matches or additional seed funding, with Micron committing $250 million. Contributions are automatically invested in a low-cost index fund, and account holders take control at age 18. The Treasury Department oversees the program, with Robinhood and BNY acting as administrators.

Mastercard and Visa led financial sector gainers this week, rising 10.32% and 9.56% respectively, buoyed by the announcement of the Open USD stablecoin venture. Robinhood Markets jumped 20.61% on news that Trump Accounts will launch next week without a platform rollover option, with BNY as financial agent and Robinhood as brokerage and initial trustee. S&P Global added 17.70% after announcing index reconstitutions. On the losing side, Goldman Sachs fell 4.14%, Citigroup dropped 3.46%, and Morgan Stanley declined 3.22% after Oppenheimer downgraded the banks, citing a shift toward expansionary spending. Crypto stocks were hit hard, with TeraWulf down 18.73%, IREN off 18.68%, and Hut 8 losing 17.45%, as Bitcoin fell below $60,000 amid record outflows from U.S. spot Bitcoin ETFs.

The BNY Mellon Global Infrastructure Income ETF (BKGI) has grown to over $1.1 billion in assets under management as of June 23, 2026, continuing its rapid ascent after crossing the $1 billion mark in May. Brock Campbell, Head of Global Research and Senior Portfolio Manager at BNY Investments Newton, described the fund as a defensive, income-oriented product with inflation-protected payouts that resonates with advisors seeking downside protection. Campbell noted that BKGI invests in publicly traded equities of infrastructure companies, offering liquidity and flexibility that complement private market infrastructure allocations. He emphasized that public and private infrastructure exposures can be paired to capture correlated returns with different attributes.

Custody banks State Street, BNY Mellon, and Northern Trust are trading near all-time highs, significantly outperforming the broader banking sector. State Street is up 32% this year, BNY Mellon has gained 26%, and Northern Trust has rallied 29%, while the KBW Nasdaq Bank Index has risen just over 12%. The rally is driven by a flight to safety among large institutional clients during volatile markets, boosting assets under custody and fee income, along with higher net interest income from short-term investments. BNY Mellon, the largest custodian with $59 trillion in client assets, reported record first-quarter revenue of $5.4 billion, up 13% year over year, with net income spiking 36% to $1.6 billion. All three firms are set to report second-quarter earnings in the coming weeks, with BNY Mellon on July 15, State Street on July 16, and Northern Trust on July 22.

The Trump administration is expected to launch Trump Accounts next week without allowing firms to host the children's savings accounts on their own platforms, Semafor reported, citing people familiar with the discussions. Companies including Chime, Empower, Fidelity, and SoFi had hoped to receive approval to roll over the accounts from the Treasury Department's app, developed in partnership with Bank of New York Mellon and Robinhood, in time for the program's launch. Those firms are now expecting guidance by August at the latest, one of the people told Semafor. Trump Accounts provide eligible American children with tax-advantaged investment accounts, with eligible children born from 2025 through 2028 qualifying for an initial $1,000 contribution from the U.S. Treasury, and family, friends, and employers able to collectively contribute up to $5,000 per year. According to experts cited by Semafor, more than half of the children eligible for the program's $1,000 seed deposit have yet to enroll.

Robinhood Markets Inc. has made its Trump Accounts app available to eligible U.S. families ahead of the program's official launch on July 4. The app allows parents and guardians to activate tax-deferred investment accounts for children under 18 with a valid Social Security number, with children born between 2025 and 2028 qualifying for an initial $1,000 contribution from the U.S. Treasury. Additional annual contributions from family, friends, and employers are capped at $5,000. The accounts, created under President Donald Trump's 'One Big Beautiful Bill Act', are designed to invest primarily in low-cost U.S. stock index funds and ETFs, with beneficiaries generally unable to access the money until age 18. Robinhood and The Bank of New York Mellon Corp. were selected by the Treasury Department in April to help administer the program, and Treasury Secretary Scott Bessent said nearly 6 million children had already enrolled ahead of the nationwide rollout.

The Federal Reserve's annual stress test found that all 32 of the largest U.S. banks have sufficient capital to withstand a severe recession, with the aggregate common equity tier 1 capital ratio falling from an actual 12.8% to a low of 11.2% but remaining above regulatory minimums. Because the Fed kept stress capital buffers unchanged from last year, eight of the ten largest banks—JPMorgan Chase, Goldman Sachs, Wells Fargo, Morgan Stanley, Citigroup, PNC, U.S. Bancorp, and BNY Mellon—immediately raised their dividends. Bank of America and Truist have not yet announced increases, though Bank of America is expected to do so when it reports second-quarter results on July 14. JPMorgan Chase also initiated a $50 million share buyback, Morgan Stanley launched a $20 million repurchase plan, and both Bank of America and Citigroup said they will continue multibillion-dollar repurchase plans. Bank stocks appear attractively valued, with several trading below 15 times earnings and others below 20 times earnings, and the second quarter looks strong for the sector.

Visa, Bank of New York Mellon, and Stripe are among the financial firms partnering to launch a new stablecoin called Open USD. The venture, named Open Standard, plans to issue the U.S. dollar-denominated stablecoin and integrate it into their systems once it goes live later in 2026. Earnings from the reserves backing Open USD will be shared among the partners, which also include BlackRock, Klarna Group, Chime Financial, Alphabet, and Coinbase Global. Zach Abrams, CEO of Stripe-owned Bridge, will serve as Open Standard's interim CEO. Major stablecoin issuers Tether, Circle Internet, and PayPal are not part of the new venture.

Bank of New York Mellon and Circle Internet have expanded their partnership to offer stablecoin enablement services for institutional clients. BNY clients can now hold USDC in digital asset custody wallets, transfer, mint US dollars into USDC, and burn USDC for US dollars, supporting the full lifecycle of institutional stablecoin activity. BNY currently serves as the primary custodian of USDC reserves and plans to extend these capabilities to additional stablecoin issuers and digital cash workflows over time.

The Bank of New York Mellon announced plans to raise its quarterly dividend 19% from 53 cents to 63 cents per share following the Federal Reserve's 2026 stress test results. The stress test reaffirmed that BNY remains well-capitalized even under a severely adverse economic scenario, giving it flexibility to return excess capital to shareholders. The latest hike extends a streak of increases including 12.8% in 2025, 12% in 2024, and 14% in 2023, while the payout ratio remains a modest 26%. BNY also has a $10-billion share repurchase program authorized in April 2026, replacing a nearly exhausted prior authorization. As of March 31, 2026, the company held cash and interest-bearing deposits of $190.1 billion against total debt of $53.3 billion.

Truist raised its price target on Bank of New York Mellon to $160 from $148 while reiterating a Buy rating. The upgrade, part of a broader preview of trust bank second-quarter results, reflects benefits from higher interest rates and a strong equity market rally. Analyst David Smith noted that trust bank stocks have been among the best-performing subsectors in banking recently. Higher earnings estimates are driven by stronger net interest income and higher asset levels, along with increased revenue and activity-related expenses. During the first-quarter 2026 earnings call, CFO McDonogh raised the full-year 2026 revenue outlook to approximately 6% growth and expects net interest income to rise about 10% year over year, while expense growth is now seen at the upper end of the 3% to 4% range.

JPMorgan Chase announced a 10% dividend increase to $1.65 per share and a new $50 billion share buyback program after clearing the Federal Reserve's 2026 stress test. The dividend hike is subject to board approval, while the buyback begins July 1 with no expiration date. The bank was among 32 lenders that passed the test, with Morgan Stanley raising its dividend 15% and Bank of New York Mellon boosting its payout by 19%. The Fed's earlier freeze of stress capital buffer requirements gave banks more clarity for capital planning, enabling these shareholder returns.

Bank of New York Mellon is set to report fiscal second-quarter 2026 earnings before the market opens on Wednesday, July 15. Analysts expect the world's largest custodian bank to post a profit of $2.16 per share on a diluted basis, up 11.3% from $1.94 per share in the same quarter last year. The company has beaten consensus estimates in each of the last four quarters. For the full fiscal year, analysts forecast earnings of $8.78 per share, a 17.1% increase from $7.50 in fiscal 2025, with further growth to $9.73 per share expected in fiscal 2027. BNY shares have risen 57.4% over the past 52 weeks, significantly outperforming the S&P 500's 20.8% gain and the Financial Select Sector SPDR ETF's 4.2% advance.

Custody bank stocks delivered a strong first quarter, with the 16 companies tracked by StockStory beating analysts' consensus revenue estimates by 2.5% on average. Cohen & Steers reported revenues of $145.6 million, up 8.3% year on year and exceeding expectations by 1.6%, though it was a mixed quarter overall. Franklin Resources stood out as the best performer, with revenues of $2.29 billion, an 8.7% increase that surpassed estimates by 11.8%, while Hamilton Lane was the slowest, with revenues of $193.6 million, down 2.2% and missing estimates by 3.4%. BNY posted revenues of $5.41 billion, up 13.8% and beating estimates by 4.3%, and Affiliated Managers Group reported revenues of $544.9 million, up 9.7% but missing estimates by 1.8%. Share prices of the group have been resilient, rising 8% on average since the latest earnings results.