State Street has launched a new unit dedicated to evolving its role in digital finance, expanding into cryptocurrencies, central bank digital currencies (CBDC) and tokenisation.
Known as State Street Digital, the new unit will be led by well-known securities services veteran Nadine Chakar, and seeks to address the industry-wide shift to a digital economy.
The Boston-based investment bank stated it would use its proprietary GlobalLink technology platform as an integral component of the unit and will be enhanced into a digital multi-asset platform.
“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,” said Ron O’Hanley, chairman and CEO at State Street.
“Digital assets are quickly becoming integrated into the existing framework of financial services, and it is 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.”
Establishing a set of trusted providers has been the key stumbling block for wide-scale adoption of digital assets and cryptocurrencies amongst institutional investors, however the launch at State Street will see it become the latest major financial to provide a platform for this market will be a major boost.
“We have been developing a number of digital capabilities and other solutions as well as partnering and investing in the infrastructure that forms the foundation of State Street Digital,” said Chakar.
“State Street has a major role to play in the evolution of digital market infrastructure and this new division will help us bring our expertise and resources to the conversation. As digital currencies and tokenisation not only gain momentum, but transform financial infrastructure and operating models, we can help our clients bridge the gap between the industry of today and the one of tomorrow.”
State Street was one of the first established financial institutions to signal its interest in cryptocurrencies in 2018. Over the years, it has invested and struck partnerships with several technology vendors dedicated to providing back-office services for digital assets, including Gemini, Lukka and Securrency.
This year, the bank was also appointed as the fund administrator for both VanEck’s Bitcoin ETF in the US and Iconic Fund’s Bitcoin exchange traded note (ETN) in Germany.