One of America’s oldest bank is looking at the most recent innovation in an attempt to attract customers.
Boston-based State Street Corp. revealed on December 17 that it’s collaborating with digital currency exchange and custodian Gemini Trust on a new initiative that analyzes situations for digital assets.
The pilot will monitor a reporting procedure for bitcoin and ether that are held for a client in Gemini’s custody service. The digital currencies were picked for reasons of liquidity, as per a public statement, but other digital assets can be added to the framework like tokenized securities.
Claimed to be the first trial of its type, the initiative is ultimately intended to enable investors to put together the reporting of digital assets stored at Gemini with customary assets serviced by State Street.
“With trillions of dollars in assets under management, State Street will never compromise on security – and neither will we,” said Tyler Winklevoss, CEO of Gemini. “Traditional investors will more seamlessly be able to allocate capital in their portfolio to digital assets through trusted and regulated financial institutions — helping us build a better bridge to the future of money.”
The move comes not long after State Street stated 38 percent of its customers intended to expand their holdings of digital assets next year. Thus, the bank is concentrating on digital assets going forward, having as of late cut back on its blockchain work with the loss of about 100 related development positions.
“There is small, but growing demand from our clients for solutions of this type and many technical, operational, regulatory, and legal considerations to be addressed,” stated Ralph Achkar, State Street’s managing director of Digital Product Development and Innovation. “That is why we have opted for an open model, and started a pilot with Gemini as an established, regulated player in the digital asset space.”
The two companies already have a prior business relationship, with State Street going about as the custodian of the dollar collateral backing Gemini’s GUSD stablecoin.