• State Street will be building a new digital asset trading desk for institutional clients.
  • The second-oldest bank in the US will consider trading crypto using the platform it is building with Puremarkets. 
  • The banking giant joins an influx of new institutions getting into the crypto space. 

The second-oldest bank in the United States is joining the cryptocurrency industry by creating a new institutional-grade digital asset platform to trade crypto.

State Street to explore crypto trading industry further

State Street will provide the infrastructure for a new bank-grade trading platform for Bitcoin and cryptocurrencies, aiming to launch mid-year. The bank could eventually use the platform for trading cryptocurrencies itself.

With $3.1 trillion in assets under management, State Street previously announced in late March that it has been exploring the role of Bitcoin in multi-asset portfolios in the last nine years. Although the firm stated that the case has yet to be made for the pioneer cryptocurrency as an equity hedge, it believes “it may be heading in that direction.”

Foreign exchange technology provider Currenex, owned by State Street, has signed an agreement with crypto company Puremarkets to provide new technology and infrastructure for the crypto trading platform – Pure Digital. 

The new digital asset platform, Pure Digital, will allow institutional investors to trade using bilateral credit and multiple custody solutions. Pure Digital will collaborate with State Street to explore the cryptocurrency trading industry. The founder of Pure Digital, Campbell Williams, said:

Pure Digital is pleased to explore the digital asset space with State Street as we share the same vision for the future of the digital currency market.

According to the official announcement, the crypto trading platform will be a fully automated over-the-counter (OTC) market for cryptocurrencies with physical delivery and bank custody. 

State Street has been investigating the crypto industry for a while, having announced a digital asset pilot in collaboration with Gemini in 2019. The pilot included the tracking of a reporting process for Bitcoin and Ether that are held for a user in Gemini’s custody service. 

The trial would allow investors to consolidate the reporting of cryptocurrencies stored in Gemini, while traditional assets would be serviced by the banking giant. In 2019, State Street revealed that 38% of its clients planned to increase their crypto holdings the following year. 

Banking giants have recently been exploring the crypto industry, including the oldest bank in the United States. BNY Mellon announced that it will launch a new cryptocurrency custody unit later this year to support their clients’ digital asset transactions. Goldman Sachs and Morgan Stanley have also made moves to offer Bitcoin-related products for their clients. 

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Another rally for AVAX price is unlikely but it could happen if…

Another rally for AVAX price is unlikely but it could happen if…

AVAX price has been on an uptrend since the bottoming formation in mid-June. The rally has been convincing so far and produced massive gains for directionally-positioned traders. However, the altcoin has reached an inflection point that could threaten this uptrend.

More Avalanche news

Dogecoin price to offer patient investors two opportunities

Dogecoin price to offer patient investors two opportunities

Dogecoin price is trying to establish a directional bias as it hovers aimlessly after collecting buy-stop liquidity above equal highs. Investors need to be aware of a potential downswing, especially considering the lack of momentum in Bitcoin price.

More Dogecoin news

This subtle cue suggests Shiba Inu price will see a tumble

This subtle cue suggests Shiba Inu price will see a tumble

Shiba Inu price is presenting quite the tug of war battle during the second trading week of August. Previous outlooks have prophesied on both bearish and bullish sides of the coin, and as of yet, no target has been successfully breached.

More Shiba Inu news

XRP price shows a massive influx of active wallets, should Investors be concerned?

XRP price shows a massive influx of active wallets, should Investors be concerned?

Ripple’s active addresses have increased by nearly 6x on multiple sets of occasions throughout the summer. Ripple price hovers just above a breached consolidative barrier, which is enticing traders to open a long positions.

More Ripple news

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP