Boston-based U.S. bank State Street has partnered with Copper.co to offer cryptocurrency custody services to institutional clients.
State Street enters the cryptocurrency space
Bloomberg reports that the bank hopes to build an infrastructure to provide digital wallet hosting services for its institutional clients by the end of this year.
Moreover, this is just the first step in the bank's expansion into the cryptocurrency space, having launched a dedicated digital division in June 2021.
Nadine Chakar, CEO of State Street Digital, said.
“Today we are talking about custody, but the sky is the limit.”
State Street Bank is one of the largest banks in the United States
State Street Corporation is an American bank founded in Boston back in 1792. Listed on the New York Stock Exchange, it is one of the world's largest asset managers, with $4.1 trillion in assets under management and $43.7 trillion in assets under custody and administration.
It was so big that it was added to the Financial Stability Board's list of "too big to fail" banks.
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The copper deal is a clear indication of how the secular bank is embracing cryptocurrencies, as its new infrastructure will allow it to store, for example, Bitcoin, Ether, Caldano, Solana and Polka.
The problem is that institutional clients have such high regulatory standards that they can't be exposed too much, but they are still interested in cryptocurrencies.
These investors prefer to entrust the physical management of the tokens to some regulated, well-equipped and insured entity, so that they have neither regulatory nor technical issues.
For this reason, even secular banks like State Street are essentially being forced to integrate cryptocurrency services, or they could lose large institutional clients or see their funds under management decrease.
By now, cryptocurrencies, and Bitcoin in particular, have become such an important part of the global financial system that no major investor can really imagine being able to stay completely out of it.
The only solution for this type of investor is to rely on a solid, reliable, financially sound structure that may have a long and strong reputation to uphold.
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