Oldest U.S. Bank 'State Street' Now Offers Bitcoin Trading Support.
2021-04-08 | Selina Mathew
State Street, the 2nd-oldest operating bank
within the U.S., is now
getting into the cryptocurrency industry by agreeing
to offer its technology for
a new cryptocurrency-related trading platform.
Currenex,
a foreign exchange technology provider owned by State Street, has entered into an agreement with cryptocurrency firm Puremarkets
to offer its trading infrastructure and tech for the new cryptocurrency trading platform Pure Digital. While
revealing the news earlier today on Thursday, Pure Digital added that
it'll also collaborate with State Street to further explore the digital currency trading industry.
As per the announcement, Pure Digital
will be totally automated
OTC market for digital assets and crypto assets, with physical delivery and bank custody. Scheduled for launch in mid-2021, the new platform will reportedly permit institutional investors to trade using bilateral credit and multiple custody solutions. “Trading participants
are going to be liberal to leverage their preferred digital asset custody solutions and manage risk via
a smart custody routing mechanism,” the announcement adds.
State Street
outlined earlier in late March that the bank has been exploring the role of Bitcoin [
BTC] in multiasset portfolios over the past 9 years. “The case has yet to be made for Bitcoin as an equity hedge, though
it's going to be heading
therein direction. The key for investors is
to mix their preferences for risk mitigation and upside potential with Bitcoin’s expected diversification and return properties
to work out their optimal allocation,” the bank adds.
State Street has been actively exploring the cryptocurrency industry in recent years. Earlier in late 2019, the bank
announced a digital asset pilot
together with cryptocurrency exchange Gemini. The pilot built on the research and development
within the digital asset space
to mix Gemini Custody with State Street’s back-office reporting.
Also earlier this year, Bank
of New York Mellon
announced plans
to carry, transfer, and issue Bitcoin and other crypto-assets as an asset manager on behalf of its clients.
Leave a comment
Your email address will not be published. Required fields are marked *
