State Street Bank to Provide Crypto Services As Client Demand Increase

State Street Corporation, the second oldest bank in U.S., will team up with a fintech company Lukka Inc. to offer digital asset services to private-fund clients.

According to a report, State Street Corporation will start offering cryptocurrency services for its private-fund clients. The bank’s partner in the move will be the back-office crypto-focused technology company – Lukka Inc.

State Street & Crypto

Bloomberg reported that the leading US bank – State Street Corporation – is looking to offer cryptocurrency reconciliation, reporting, and processing services to its private-fund users. To achieve that, the financial institution teamed up with the digital assets technology firm Lukka Inc.

In addition, Lukka will provide State Street’s top clients with data to support valuation services.

Nadine Chakar, a top executive at the US bank, noted that the demand in cryptocurrencies has not cooled off, and the institution will keep satisfying its clients’ appetite for digital assets.

She explained:

“The growth in popularity of digital assets is showing no signs of a slowdown and State Street Digital is committed to continuing to build out the necessary infrastructure to further develop our digital assets servicing models to help meet our clients’ growing demands.”

State Street recently enabled cryptocurrency trading through its infrastructure. The corporation with more than $3 trillion in assets under management announced it would allow the London-based exchange Pure Digital Markets to use its Currenex platform for trading with virtual currencies.

State Street’s Crypto-Focused Division

State Street Corporation decided to release a digital unit focused on cryptocurrency investments. The bank’s move came after customers demand to crypto services had soared by 300% in the past few months.

Nadine Chakar commented:

“We are at a tipping point now where this is moving fast. We are getting calls from endowments and foundations that are getting donations in crypto and saying, what do we do with this? We are seeing companies that are thinking of adding crypto to their balance sheets.”

Chakar added that State Street would support “everything in crypto services that we are allowed to support from a regulatory perspective. The level of communications back and forth with our regulators is intense.” She also revealed that the new initiative would result from a collaboration between the bank and several academic organizations and local regulators.