On Thursday, the Boston-based financial services and bank holding company State Street Corporation announced the launch of a division dedicated to cryptocurrencies, the digital economy, and decentralized finance (defi).
State Street Invokes New Division Dedicated to Crypto, Blockchain, and Defi
The financial services company State Street (NYSE: STT) offers a wide array of products like Investment management, securities lending, stock trading, and custodial banking services. In Q3 2020, data shows that State Street has around $3.15 trillion assets under management (AUM). On June 10, the company revealed it is stepping into the world of digital finance in a big way by launching a new division focused on innovative technologies.
State Street’s announcement on Thursday reveals the financial institution plans to “expand to include crypto, central bank digital currency, blockchain, and tokenization.” The company also notes that it already operates the firm’s proprietary GlobalLink technology platform. The technology will be enhanced, State Street details and it will become 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,” Ron O’Hanley, chairman and chief executive officer of State Street Corporation explained. “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.”
The banking firm further noted that as the objective is to evolve into a multi-asset platform it will support both crypto asset classes and other types of assets. “The aim will also be to support our peer-to-peer ambitions by creating new liquidity venues for our clients and investors worldwide,” State Street’s announcement said.
“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,” State Street executive Nadine Chakar explained. “As digital currencies and tokenization 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.”
Chakar was recently appointed to lead State Street Digital to address the financial industry shift to a digital economy and defi, the announcement highlights. The financial services firm executive concluded that the company has been “developing a number of digital capabilities and other solutions,” alongside investing in infrastructure.
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