State Street Creating Cryptocurrency Department

State Street

State Street, the US-based financial services and custody bank, which provides a total of 40 trillion asset custody with its branches all over the world, announced that it will establish a special cryptocurrency department. The bank’s press release stated that its current remittance platform, called GlobalLink, will be transformed into a multi-asset digital transaction center.

With this new unit, the bank will transform the existing GlobalLink remittance platform into a digital transaction center that includes cryptocurrencies, central bank digital currencies, blockchain, and tokenization. The company aims to support person-to-person payments by creating new liquidity areas for customers and investors around the world.

In April, State Street was considering creating a bank-grade digital trading platform, but company executives opposed such a development. However, although not much time has passed since then, the company’s decision seems to have changed.

Digital Needs Are Increasing Day by Day 

In the press release signed by State Street CEO Ron O’Hanley, it was stated that digital assets are now being integrated into the financial services system, and the following statements were used:

“We now need to offer our customers both traditional and digital financial services. Digital needs are increasing day by day. In this sense, it is very critical to be able to produce solutions for all our customers…”

State Street Decides on Cryptocurrency Department After Rival Company Enters This Industry

An expert who spoke to Coindesk on the subject, who did not give his name, said that the biggest reason for State Street to make this move is that BNY Mellon, another giant financial service institution in the USA and the world, will provide crypto money custody services. BNY Mellon made this statement in February.,

In April, State Street started to give signals of such a move. The company became the governing body of the Bitcoin exchange-traded bond (ETN) of Iconic Funds, which issues cryptocurrency index investment products.

Before this appointment, the bank was also the fund manager and transfer officer of the VanEck Bitcoin Trust, which is currently pending approval from the SEC.

SEE ALSO; Cryptocurrencies for Central Banks

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