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State Street, the second-oldest continuously running bank in the United States, has established a new section dedicated to bitcoin and digital assets.
State Street Corporation, a multibillion-dollar asset management, has become the latest financial institution to announce the formation of a dedicated digital finance branch.
State Street, the second-oldest continually operating bank in the United States, announced the move on Thursday, June 10, highlighting the division’s focus on cryptocurrency, blockchain technology, 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. He 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, the firm’s head of global markets, will lead the division and report its operations to COO Lou Maiuri. “State Street will play a significant role in the evolution of digital market infrastructure,” said Chaker.
The business intends to develop its unique GlobalLink technology into a platform that can handle a variety of digital assets, including peer-to-peer capability.
State Street has $3.6 trillion in assets under management and $40.3 trillion in custodied assets, and is the second large worldwide custodian to introduce digital asset services, following BNY Mellon.
The creation of the new division 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.
During March, State Street was also selected as the administrator and transfer agent for a Bitcoin exchange-traded fund (ETF) proposed by VanEck in the United States. In 2019, the company has collaborated with Gemini to test automated reporting services for its custodial customers.