The world's second-largest custodian bank ventures into digital assets! CEO of State Street: Digital assets will be a key industry driver in the next five years.

The second oldest financial institution in the United States, State Street Corporation, has announced the establishment of a new department focused on digital finance called State Street Digital. The department will concentrate on developing emerging digital financial areas such as cryptocurrencies, blockchain technology, central bank digital currencies (CBDCs), and tokenization.

State Street Bank Ventures into Digital Assets

On June 10, State Street Corporation announced the establishment of a new division, "State Street Digital," focusing on the development of emerging digital financial areas such as cryptocurrencies, blockchain technology, central bank digital currencies (CBDC), and tokenization, as stated in their press release. State Street Corporation, one of the oldest financial institutions in the United States, managing assets worth $3.6 trillion and custodial assets of $40.3 trillion, follows in the footsteps of New York Mellon Bank in launching digital asset services on a large scale. Ron O'Hanley, CEO and Chairman of State Street, stated in the press release:

"The financial industry is transitioning to the digital economy, and we believe that digital assets will be one of the key drivers influencing our industry in the next five years. Digital assets are rapidly integrating into existing financial service frameworks, and it is crucial that we have the right tools to provide solutions that meet the traditional investment needs and growing digital demands of our clients."

Furthermore, State Street's foreign exchange trading technology company, GlobalLink, will assist State Street Digital in building the platform into a digital multi-asset platform to support cryptocurrencies in other asset classes, creating a new liquidity hub for global clients and investors.

In fact, State Street Bank's venture into digital assets does not seem to be a recent decision, as evidenced by some clues from its past activities. In April, the company was appointed by Iconic Funds as the broker for the Bitcoin ETP listed on the Deutsche Boerse Xetra exchange. In the same month, the company also invested $30 million in Securrency, a blockchain-based fintech and regulatory tech company.

Moreover, in the Bitcoin ETF application submitted by VanEck in March, State Street was also named as the broker and transfer agent for the product.