State Street, a Boston-based custody bank with $40 trillion in assets has set up a Digital division to offer crypto services amid growing client demand. The bank said cryptocurrencies are at a tipping point and they would offer as many crypto services as they can under the available regulations.
The move was based on growing clients’ demand for crypto exposure. Nadine Chakar who would be heading the new digital division said that many clients have increased their crypto exposure by 300% over the past two months and the bank is trying to keep up with the massive demand. She explained,
“We are at a tipping point now where this is moving fast,” she said. “We are getting calls from endowments and foundations that are getting donations in crypto and saying what do we do with this? We are seeing companies that are thinking of adding crypto to their balance sheets.”
Chakar also revealed that they have an intense communication process with the regulators to ensure their services abide by the regulatory policies.
State Street Joins Growing League of US Custody Banks With a Crypto Arm
State Street becomes the second major US custody bank to dwell into crypto after Bank of New York Mellon. Other major US bank to join the growing crypto league includes Northern Trust and Standard Chartered.
The announcement by the banks comes within weeks of Iconic Funds appointment to serve as the administrator of a bitcoin-backed exchange-traded note listed on the Frankfurt Stock Exchange.
State Streer has also applied for SEC’s clearance to list VanEck’s Bitcoin ETF after it was appointed as fund administrator and transfer agent. SEC had earlier postponed its decision on VanEck’s ETF proposal and Chakar believes SEC might take its time. She said,
“If they do need more time to get it right and provide the industry with the clarity we need, we will continue to work with our clients. In this case, patience is a virtue. We will continue to be patient.”