Bitcoin News

Oldest U.S. Bank ‘State Street’ Now Offers Bitcoin Trading Support.

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.

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