In the first appearance of encrypted digital currencies, the ancient traditional banks viewed encrypted digital currencies with suspicion and saw them as a threat to their throne.
With time and with the increase in the use of encrypted digital currencies and the demand for them by individuals and institutions, the options of these traditional banks have become few and limited, either to compromise and benefit from digital currencies or to boycott and miss great opportunities in this field.
Recently, several press reports appeared that the second oldest American financial institution, State Street Corporation, will start providing cryptocurrency services to its private fund clients.
The bank’s partner in this move is Lukka Inc., which focuses on cryptocurrencies.
State Street Bank delves into cryptocurrency:
According to a “ Bloomberg ” report , the leading US bank “State Street” is looking to provide cryptocurrency settlement, reporting and processing services to private fund users.
To achieve this, the financial institution has teamed up with digital currency technology company “Lukka Inc.”
In addition, Lukka Inc. will provide State Street clients with data to support assessment services.
Nadine Shaker, a senior executive of the American bank, indicated that the demand for cryptocurrencies has not subsided, and the institution will continue to satisfy the appetite of its customers towards digital currencies, and also stated:
The growth in the popularity of cryptocurrencies is showing no signs of slowing down and State Street Digital is committed to continuing to build the necessary infrastructure to continue developing our crypto service models to help meet the growing demands of our customers.
It is worth noting that State Street is the second oldest bank in America, which recently enabled the bank to trade cryptocurrencies through its infrastructure.
The company, which holds more than $3 trillion in cryptocurrency under management, has announced that it will allow London-based Pure Digital Markets to use Currenex to trade cryptocurrency.
State Street aims to create a division focused on cryptocurrency:
State Street has decided to launch a digital unit focused on investing in cryptocurrencies.
The bank’s move came after customers increased their demand for digital currencies by 300% in the past few months.
Nadine Shaker commented:
We’re now at a tipping point where this is moving fast.
We receive calls from endowments and institutions that receive cryptocurrency donations and say, what are we going to do with this? We are seeing companies considering adding cryptocurrency to their balance sheets.
Nadine added that State Street will support everything in the crypto services that we are allowed to support from a regulatory perspective.
She also revealed that the new initiative will result from a collaboration between the Bank and several academic organizations and local regulatory bodies.