The 2nd oldest continuously running United State bank, State Street, has launched a new section which is fully dedicated to cryptocurrency and digital assets.
Multi-trillion dollar asset manager, State Street Corporation, has become the newest financial institution to declare the launch of a dedicated digital finance section.
State Street declared on 10 June, Thursday that the new section’s main focus is on Blockchain Technology, Cryptocurrency, Central bank digital currencies(CBDCs) and tokenization.
”The financial industry is transforming to a digital economy, and we see digital assets as one of the most significant forces impacting our industry over the next five years,” asserted State Street CEO and chairman, Ron O’Hanley.
The chairman added: “Digital assets are quickly becoming integrated into the existing framework of financial services, and it's critical we have the tools in place to provide our clients with solutions for both their traditional investment needs as well as their increased digital needs.”
Nadine Chaker, firm's head of global markets, will be the head of the new section and report its operations to COO Lou Maiuri. “State Street has a major role to play in the evolution of digital market infrastructure,” said Nadine.
The company hopes to expand its proprietary GlobalLink technology into a platform supporting multiple digital assets, including peer-to-peer functionality.
After BNY Mellon State Street became the second big global custodian to launch digital asset services. State Street recently boasts $3.6 T worth of assets under management and $40.3 T in custodied assets.
The creation of the new section is not State Street’s first foray into digital assets, with the firm having been appointed as the administrator of a German Bitcoin-backed exchange-traded note (ETN) from Iconic Funds in April. That same month, the firm invested in a $30 million Series B round for blockchain-based fintech and regtech firm, Securrency.
State Street was also named as administrator and transfer agent for a Bitcoin exchange-traded fund (ETF) proposed by VanEck in the United States during March. The firm also teamed up with Gemini in 2019 to trial automated reporting services for its custody customers.