State Street Corporation, multi-million dollar asset manager, It is the latest financial institution to announce the creation of a digital finance division.
State Street, the second oldest continuously operating bank in the United States, announced the announcement on Thursday June 10, highlighting the division’s focus on cryptocurrencies, blockchain technology, central bank digital currencies (CBDC) and tokenization.
“The financial industry is transforming into a digital economy and we believe digital assets are one of the most important forces that will affect our industry over the next five years.” State Street Chairman and CEO Ron O’Hanley said. And he added:
â ???? Digital assets are rapidly being integrated into today’s financial services framework, and it is critical that we have the tools in place to offer our clients solutions for both their traditional investment needs and their growing digital needs.
The company’s head of global markets, Nadine Chaker will head the division and report her business to COO Lou Maiuri. “State Street plays an important role in developing the digital market infrastructure“said Chaker.
The company hopes to expand its proprietary GlobalLink technology into a platform that supports multiple digital assets.including peer-to-peer functionality.
State Street currently has $ 3.6 trillion in assets under management and $ 40.3 trillion in assets under custody is the second largest global custodian introducing digital asset services and following in the footsteps of BNY Mellon.
The establishment of the new division isn’t State Street’s first foray into digital assets, as the company was named manager of a Bitcoin-Backed Exchange Traded Note (ETN) from Iconic Funds in April. That same month, the company invested in a $ 30 million Series B round for blockchain-based ledger and financial technology company Securrency.
State Street was also appointed administrator and transfer agent of a Bitcoin Exchange Traded Fund (ETF) proposed by VanEck in the United States in March.. The company also partnered with Gemini in 2019 to test automated reporting services for its fiduciary clients.
Don’t stop reading: