The past few months have seen numerous traditional financial institutions enter the cryptocurrency space. They began opening up to cryptocurrencies and are slowly providing crypto-related services to their clients. One of the oldest banks in the United States is now set to enter the cryptocurrency sector.
State Street to start trading cryptos soon
State Street, the second-oldest bank in the United States, is reportedly planning to start trading cryptocurrencies soon. With over $3 trillion in assets under management, the bank is developing the infrastructure for a new bank-grade trading platform for digital assets.
The platform is expected to go live in a few months, and State Street could start using it to trade cryptocurrencies. State Street announced this earlier today, revealing that its Currenex trading technology division is working with London-based Pure Digital, an infrastructure provider to the foreign exchange trading world. The two are working on creating an institution-focused digital currency trading platform. The companies intend to further explore the cryptocurrency sector.
David Newns, the global head of Execution Services for State Street Global Markets, said, “Currenex is thrilled to leverage our experience and expertise in the FX and digital asset trading marketplace to provide Pure Digital with robust technology and infrastructure for this exciting digital currency trading initiative.”
When asked if State Street will use the platform to trade cryptocurrencies, Lauren Kiley, CEO of Pure Digital, said that is their intention. “That is the intention – State Street is one of the many banks that will be using this platform, and we are looking at midway through 2021, although no date is set.”
However, Newns later clarified that the bank is still considering using the platform to trade cryptocurrencies. At the moment, they have no statement of commitment.
Banks are bullish on cryptocurrencies
Bitcoin and other cryptocurrencies have changed the stance of most commercial banks over the past year. Private banks and other financial institutions were previously critical of cryptocurrencies. However, their positions have changed over the past few months.
Big banks such as BNY Mellon, Goldman Sachs and Morgan Stanley are all making moves to boost their presence in the crypto space. The entry of the big banks and other financial institutions is expected to help the cryptocurrency space grow and mature, providing it with the necessary liquidity to compete with the other major financial markets.