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State Street to launch crypto services for private funds clients

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State Street Bank (STT) appreciated the growing popularity of digital assets and decided to develop in this area.

State Street, one of the oldest American banks, has partnered with New York-based Lukka to launch cryptocurrency services for individual clients.

Lukka will act as a data and software provider. In addition to the Lukka toolbox, the bank will also use its own solution for managing information about digital assets, as well as data on their rates.

The crypto asset management services, which the bank will provide in partnership with Lukka, will target private foundations. The service package will include the collection, processing and reporting of cryptocurrencies and other digital assets.

The partnership with Lukka is the final touch before launching a digital asset management business, State Street said. Earlier, the bank has already created for this purpose a new division called State Street Digital.

Thus, the holding, which manages $ 3.1 trillion in assets, seeks to expand services in the areas of cryptocurrencies, CBDC, blockchain and tokenized shares.

Demand for cryptocurrencies is growing despite the decline in prices

“State Street Digital will continue to improve infrastructure and digital asset service models to fully meet the needs of our customers”, said Nadine Chakar, Head of State Street Digital.

She also said that the bank does not observe a decrease in the popularity of cryptocurrencies among clients. Large investors continue to increase their investments in cryptocurrencies, even in the face of a correction. Long-term investors showed little reaction to Bitcoin’s drawdown, according to on-chain metrics. The index, which tracks the movement of old coins, has been stable since mid-January, so the financial giant is ready to shape the infrastructure for the development of digital currencies to meet the growing needs of customers.

“Large funds with a traditional portfolio of services increasingly interested in working with cryptocurrencies, they will soon turn to their trusted providers for digital asset management services, and this is State Street”, said Lukka CEO Robert Materazzi.

State Street has been exploring the cryptocurrency space for a long time

State Street opened a cryptocurrency division in June. Its main focus is on cryptocurrencies, central bank digital currencies, blockchain technology, and asset tokenization. STT manages assets worth $ 42.6 billion. The bank has been exploring the cryptocurrency space for several years, collaborating with industry projects.

In 2019, State Street, along with the Gemini cryptocurrency exchange, launched a pilot project to prepare tax reports for cryptocurrencies.

It should be noted that State Street and Lukka cooperate not only in terms of providing services. STT also spearheaded Lukka’s Series C funding in December 2020.

Also this month, it joined the UK trading platform Pure Digital. This happened after another major bank, BNY Mellon, did it.

In April 2021, State Street was appointed fund administrator and transfer agent for the VanEck Bitcoin Trust. Which has applied for the registration of a Bitcoin ETF and is pending approval by the US Securities and Exchange Commission (SEC).

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