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Multi-trillion Asset Manager State Street Launches Digital Currency Division

State Street Corporation, a multi-trillion dollar asset manager, has become the latest financial institution to announce the launch of a dedicated digital finance division.

State Street, the second oldest continuously operating bank in the United States, announced The move on Thursday, June 10 highlights the division’s focus on cryptocurrencies, blockchain technology, central bank digital currencies (CBDCs), and tokenization.

State Street CEO and Chairman Ron O’Hanley said, “The financial industry is transitioning into a digital economy, and we see digital assets as one of the most important forces affecting our industry over the next five years. ” she added:

“Digital assets are increasingly integrated into the existing financial services infrastructure, and it is vital that we have the tools to provide our clients with solutions for their traditional investment needs as well as their growing digital needs.”

The firm’s head of global markets, Nadine Chakar, will lead the division and report its operations to COO Lu Mayuri. “State Street has a major role to play in the development of digital market infrastructure,” Chakar said.

The company expects to expand its proprietary GlobalLink technology into platforms that support multiple digital assets, including peer-to-peer functionality.

State Street currently has $3.6 trillion in assets under management and $40.3 trillion in custodial assets, and is the second major global custodian to launch digital asset services. BNY Mellon.

related: $157B Victory Capital plans to enter the crypto market

The creation of the new division is not State Street’s first foray into digital assets, with Iconic Funds appointed as administrator of the German bitcoin-backed exchange-traded note (ETN) in April. same month, firm Investment Blockchain-based fintech and regtech firm, Security in a $30 million Series B round.

State Street was also named as the administrator and transfer agent for bitcoin exchange-traded funds (ETFs). VanEck. proposed by in the United States during March. The firm also partnered with Gemini in 2019 test automated reporting services For your custody customers.