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On Thursday, Boston-based financial services and bank holding company State Street Corporation announced the establishment of a division dedicated to cryptocurrency, digital economy and decentralized finance (defi).
State Street (NYSE: STT), a financial services company, provides a wide range of products, such as investment management, securities lending, stock trading, and custodial banking services. In the third quarter of 2020, data show that State Street Bank manages approximately US$3.15 trillion in assets (AUM). On June 10, the company revealed that it will aggressively enter the field of digital finance by establishing a new department focused on innovative technologies.
State Street’s announcement on Thursday indicated that the financial institution plans to “expand to include encryption, central bank digital currency, blockchain, and tokenization.” The company also pointed out that it is already operating the company’s proprietary GlobalLink technology platform. The technology will be enhanced, State Street detailed, it will become a “digital multi-asset platform.”
“The financial industry is transforming into a digital economy, and we believe that digital assets are one of the most important forces affecting our industry in the next five years,” State Street Chairman and CEO Ron O’Hanley explained. “Digital assets are rapidly being integrated into the existing financial services framework. It is vital that we have the appropriate tools to provide customers with solutions that meet their traditional investment needs and growing digital needs.”
The bank further pointed out that since the goal is to develop into a multi-asset platform, it will support crypto asset classes and other types of assets. “Our goal will also be to support our P2P goals by creating new liquidity venues for our customers and investors around the world,” State Street’s announcement stated.
“State Street plays an important role in the development of digital market infrastructure, and this new department will help us bring our expertise and resources into the conversation,” State Street executive Nadine Chakar explained. “As digital currency and tokenization not only gain momentum, but also change financial infrastructure and operating models, we can help our customers bridge the gap between today’s industry and the future.”
The announcement emphasized that Chakar was recently appointed as the head of State Street Digital to solve the problem of the financial industry’s transition to a digital economy and defi. The financial services company executive concluded that the company has been “developing a large number of digital features and other solutions” while investing in infrastructure.
What do you think of State Street Bank’s establishment of a department focusing on cryptocurrency, digital economy and Defi? Please tell us your thoughts on this topic in the comments section below.
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