America’s Second Oldest Bank State Street to Provide Cryptocurrency Services to Private-Fund Customers

Forum 3 years ago

America’s Second Oldest Bank State Street to Provide Cryptocurrency Services to Private-Fund Customers

State Street Corporation joined forces with Lukka Inc. to offer cryptocurrency services to private-fund clients.

The American financial institution State Street Corporation will reportedly start offering digital assets services for its private-fund clients. The bank’s partner in the move is the back-office crypto-focused technology company – Lukka Inc.

State Street Dives Deeper into Crypto

According to a recent Bloomberg report, the leading US bank – State Street Corporation – is looking to offer cryptocurrency reconciliation, reporting, and processing services to its private-fund users. To achieve that, the financial institution teamed up with the digital assets technology firm Lukka Inc.

In addition, the latter will provide State Street’s top clients with data to support valuation services. Nadine Chakar – a top executive at the US bank – noted that the demand in cryptocurrencies has not cooled off, and the institution will keep satisfying its clients’ appetite for digital assets:

“The growth in popularity of digital assets is showing no signs of a slowdown and State Street Digital is committed to continuing to build out the necessary infrastructure to further develop our digital assets servicing models to help meet our clients’ growing demands.”

Nadine Chakar, Source: americanbanker.com

It is worth noting that State Street, which is America’s second oldest bank, recently enabled cryptocurrency trading through its infrastructure. The corporation with more than $3 trillion in assets under management announced it would allow the London-based exchange Pure Digital Markets to use its Currenex platform for trading with virtual currencies.

State Street to Set up a Crypto-Focused Division

As CryptoPotato reported last month, State Street Corporation decided to release a digital unit focused on cryptocurrency investments. The bank’s move came after its customers had surged their demand for virtual assets by 300% in the past few months. Nadine Chakar – the leader of the division – commented:

“We are at a tipping point now where this is moving fast. 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 added that State Street would support “everything in crypto services that we are allowed to support from a regulatory perspective. The level of communications back and forth with our regulators is intense.” She also revealed that the new initiative would result from a collaboration between the bank and several academic organizations and local regulators.