Alternative Investments/Digital: State Street Digital, A New Division At State Street, To Focus On Crypto

The new division would have as many as 425 professionals.

State Street (NYSE: STT), which has $40.3 trillion in assets under custody or administration, said Thursday it is establishing a new digital finance division called State Street Digital. The new unit will focus on digital financial services for crypto, tokenization, blockchain and CBDCs. (Institutional Investor)

The impetus for the new business came from the 300% growth in crypto investments of clients during the period from February to April.

State Street Digital will have a 425-person team led by Nadine Chakar.

Digital assets alongside traditional assets

“This is important to asset managers, hedge funds, insurance companies, pension plans, endowments, and foundations,” said Chakar. “This is going to change everything that we do.”

“We are working with asset managers in the same way [as those who are] looking for trusted providers like State Street that can help them with the custody, the reporting, striking NAV [net asset value], and consolidating those assets with their traditional assets,” Chakar added.

Competition already in the field

In February, it was reported that BNY Mellon, the oldest bank in America, will hold, transfer and issue bitcoin and other unspecified crypto assets on behalf of its asset-management clients later this year.

BNY Mellon has reportedly assembled a team to evaluate the procedure for the incorporation of digital assets into various businesses.

Roman Regelman, chief executive of BNY Mellon’s asset-servicing and digital businesses, said at the time that institutional players want the bank to treat digital assets on par with other holdings.

Well, it’s like a startup

State Street’s move appears courageous in the face of increasingly hostile rhetoric from regulators around the world for more supervision of crypto given its potential to facilitate illegal activity.

“Every single regulator on the planet is looking at this,” said Chakar to Institutional Investor. “But that’s okay, we’re used to that. The key here is 10 percent of the world’s assets flow through our pipes everyday. We have a responsibility to lead with the observation and experience that we gather by serving our clients everyday. It is that constant dialogue and that ability to experiment… it’s really running this division like a startup in the middle of a very well established bank.”

Related Story:   Bitcoin Scales New High Amidst Confluence Of Positive News

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
FinTech: UK-Based BNPL Player Zilch Closes Series B With Additional $110M
July 23, 2021     FinTech, News

The $110 million comprised both debt and equity capital. Zilch, the UK-based BNPL platform has raised an additional $110 million from Goldman Sachs and DMG Ventures. The funding is part…
Alternative Investments/Hedge Funds: Inflation Fears Boost Hedge Funds’ AUM To Nearly $4T
July 23, 2021     Alternative Investments, Hedge Funds, News

A market survey by alternatives technology provider Vidrio Financial shows that fears of inflation have helped move substantial fund allocations during the first half of 2021 to alternative assets such…
Alternative Investments/Digital: Global X Throws Its Hat In The Bitcoin ETF Ring

Global X, the New York-based ETF provider and subsidiary of $560 billion investment manager Mirae Asset, has filed with the SEC for permission to launch a bitcoin ETF titled the…
Digital Assets: Crypto Adoption Stories From JPMorgan, Gallup Poll, Bitcoin Depot, And UBS
July 23, 2021     Digital Assets, News

Four news bites that show cryptos are hanging on, recent crashes notwithstanding. From bitcoin ATMs to crypto FOMO, here goes….