State Street one of the biggest companies in the US which is involved in the business of managing assets. But being one of the largest asset management companies doesn’t mean that it is also managing crypto assets. However, there is much potential as well as profits for any asset management company if it integrates digital asset management services as well.
For instance, in the field of crypto asset management, the US’s Grayscale Investment is for the time being the biggest crypto asset manager. In the past year one of the most lucrative crypto assets was turned out to be Bitcoin. It was not only massively adopted but the value of Bitcoin soared to its highest levels i.e. 900%. Being hosting the biggest and highly valued Bitcoin Fund of the world, one can only imagine how much profits Grayscale Investment may have earned.
For the time being there are many business competitors of Grayscale who too are tiptoeing for becoming a part of crypto asset management. State Street is one of those asset management company that is in competition with Grayscale and intends to join the crypto industry.
It was informed by State Street that it has extended its business arms with a crypto company called Pure Digital. The purpose of the partnership is to render all technical services required by Pure Digital from State Street. Before this partnership, State Street has never worked with any crypto entity. In fact, State Street is for sure a new entrant in the crypto space.
Meanwhile, Pure Digital, which is soon to be launched Bitcoin has informed that it will be a Bitcoin purpose-built trading platform. Trades and exchanges relating to Bitcoin only will be carried out at the platform, told Pure Digital’s officials.
As regards State Street’s services, the asset management company told that its role is to ensure that Pure Digital’s customers can use their cash for crypto purchases. In addition, State Street would ensure that the customers’ bank accounts are interlinked with their accounts to be maintained by Pure Digital. State Street will be providing its Currenex platform to be used as a bridge between bank accounts and Pure Digitals’ accounts.
However, Pure Digital’s Bitcoin trading platform hasn’t gone live yet. It is expected to be launched by the end of May 2021.
Meanwhile, David Newns, who is the head of the Global Markets Department at State Street said that the partnership will be beneficial for both. He apprised that the Currenex platform will be a groundbreaking addition in the digital currency sector.
On the other hand, Pure Digital’s CEO, Lauren Kailey, stated that he is in constant touch with banks and their officials. He informed that banks have been saying that they cannot ignore the demands of their customers. If they want to be a part of crypto then we have to make sure that they are rendered proper banking services, mentioned Kailey.
But for State Street, this is a major step as there are already big players in crypto asset management industry.
