Known for its financial services, State Street has launched a new digital finance division. The new unit will focus on cryptocurrency, defi, blockchain technology, and tokenization. Nadine Chakar, an industry veteran with three decades of experience, will lead the division. Chakar will report to Lou Maiuri, State Street’s EVP, for digital strategy. Chakar will focus on helping institutional investors navigate the rapidly evolving cryptocurrency industry.
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The Boston-based investment bank has announced that it will create a new digital finance division to focus on crypto, central bank digital currencies, blockchain, and tokenization. It plans to develop its GlobalLink technology platform into a digital multi-asset platform and bring in the expertise of the securities services group. Nadine Chakar, the head of global markets for the company, will lead the new division.
The firm’s entry into the crypto space is one of the latest signs that the firm is committed to a growing interest in the space. Earlier this year, State Street was one of the first large financial institutions to signal its interest in cryptocurrencies.
It has invested in several technology companies and entered into partnerships. It has also appointed itself fund administrator for the VanEck Bitcoin ETF in the U.S. and Iconic Fund’s Bitcoin exchange-traded note in Germany. But the company’s move is still just the beginning. State Street is one of the most important players in the crypto space and is poised to become one of the biggest names in the market.
The investment firm plans to offer its custodial service for cryptocurrencies and is leveraging the technology developed by cryptocurrency company Copper. Copper’s platform is based on a blockchain that will allow State Street to hold different digital assets. The firm will hold several of these, including Polkadot and Solana. Check these cryptos on bitcode-prime.cloud. It has more than 4 trillion dollars under management and custody at the end of December, so it’s not surprising to see the company jumping into the crypto world.
Slate Street is a leading investment company with a diverse portfolio. The company’s investment management division is responsible for a portion of the $4.14 trillion in assets under management. As of December 31, 2021, it will have over four trillion dollars in AUM. In the meantime, Slate Street has become an industry leader in crypto and cryptocurrency. That’s why many investors are looking to Slate Street to invest in the new market.
The company’s move comes on the heels of its recent appointment as the back office administrator for a bitcoin exchange-traded fund, which is currently pending approval by the U.S. Securities and Exchange Commission.
State Street Launches New Crypto Finance Division
The firm is also working with clients to launch their own cryptocurrency ETFs. State Street executives focus on digital opportunities beyond cryptocurrencies, such as blockchain technology and the underlying blockchain.
The move signals the continued adoption of cryptocurrency by U.S. financial institutions. In July, State Street partnered with the Bank of New York Mellon, part of a consortium of six financial firms.
The firm has also joined forces with Pure Digital, an institutional cryptocurrency trading platform that aims to become the largest institutional crypto exchange globally. State Street has invested in several crypto assets startups in the past.
While its investment in Securrency is significant, the move demonstrates the growing popularity of crypto assets. In its most recent Series B round, the company raised $30 million from investors, including State Street, Abu Dhabi Catalyst Partners Limited, U.S. Bank, and others.
Many major Wall Street firms have also entered the cryptocurrency market in recent months, with JPMorgan becoming the first U.S. bank to offer a bitcoin-based investment fund. Morgan Stanley and Goldman Sachs have also announced plans to offer cryptocurrency-related products to their clients. However, they haven’t publicized the launch date of their first bitcoin unit. These moves suggest that other financial institutions make the same move as State Street in the cryptocurrency sector.
The launch of the new cryptocurrency division comes when bitcoin has been gaining momentum as a global currency. The company may update its GlobalLink platform to accommodate peer-to-peer bitcoin trading to keep up with demand. The firm also may try out the Defi market by enabling institutions to test the new technology.