Tens of billions of dollars have reportedly left three US banks as depositors look for better alternatives that could generate higher returns on their savings. According to a new Financial Times report, nearly $60 billion worth of deposits have been yanked out of banking giants Charles Schwab, State Street and M&T in Q1 of 2023. […]
The post Nearly $60,000,000,000 Yanked Out of Three US Banks Amid Collapse of Silicon Valley Bank and Other Lenders: Report appeared first on The Daily Hodl.
After UBS acquired Credit Suisse and close to a dozen financial institutions injected $30 billion into First Republic Bank four days ago, S&P Global downgraded First Republic’s shares to junk status on Sunday. Investors are concerned that the cash infusion from 11 major financial institutions may not address the bank’s liquidity issues. First Republic’s shares […]
After the fall of Silvergate Bank, Silicon Valley Bank (SVB), and Signature Bank (SNBY), First Republic Bank, a commercial bank and wealth management services provider, is the latest financial institution to receive a bailout. Close to a dozen lenders announced they will deposit $30 billion into the beleaguered bank’s coffers to shore up liquidity. U.S. […]
Investment management firm State Street says that institutional clients are not deterred from investing in crypto assets despite price declines. “There is a belief that the asset class is here to stay,” a State Street executive said. State Street on Institutional Demand for Crypto State Street, a leading investment management firm, sees unwaning institutional demand […]
A State Street exec says there is an institutional “belief that the asset class is here to stay” and to expect further product launches from traditional finance firms moving forward.
Institutional investors are unfazed by the current crypto winter and have maintained their interest in blockchain and digital assets according to megabank State Street.
Speaking with Australian news outlet Sydney Morning Herald (SMH) on Sept. 11, Irfan Ahmad, the Asia Pacific digital lead for the bank’s crypto unit State Street Digital emphasized that despite extreme volatility through June and July, the firm’s institutional clients have continued to make moves in the sector.
“During the course of the June, July period where things were really hotting up in terms of activity, we saw institutional clients not necessarily double down, but they weren’t really deterred from placing strategic bets on the asset class itself.”
Three crypto exchange-traded funds (ETFs) from Cosmos Asset Management and 21Shares launched on the Cboe Australia exchange in May, while asset manager Monochrome has recently received approval to launch the country's first Australian financial services licensed spot crypto ETF in August.
State Street is the fund administrator for the Cosmos Purpose Bitcoin Access ETF in particular, and Ahmad told the SMH that more crypto product launches are coming to Australia in the “very near future” but did not outline any specific names.
“Certainly, our clients, they’ve been speaking to us more pragmatically about how they might be able to launch products, or what our capabilities may be in the future to help them support the launch of those products,” he said.
Meanwhile, the Australian Securities Exchange (ASX) and Australian banking giants such as ANZ and NAB have been primarily focused on stablecoins and traditional asset tokenization rather than crypto investments specifically.
The Commonwealth bank had a short lived crypto trading service play that was indefinitely halted in May due to regulatory uncertainty.
Overseas, big-name American institutions such as BlackRock have been making serious crypto plays of late. Last month, the $10 trillion asset manager partnered with Coinbase to provide institutional clients direct exposure to crypto and launched a private spot Bitcoin (BTC) trust.
Global investment bank Citigroup in August also hired two key execs in Ryan Rugg and David Cunningham as part of the firm’s Treasury and Trade Solutions (TTS) unit which oversees its institutional crypto offerings.
Related: Australian Treasury consults public on Bitcoin foreign currency tax exclusion
Rugg signed on to be the global head of digital assets for TTS, while Cunningham was onboarded as the director and strategic partner development for digital assets at the firm.
More recently on Sept. 7, Swiss digital asset banking platform SEBA Bank launched an institutional Ether (ETH) staking service to meet the growing demand for the yield-bearing asset ahead of the Merge.
After leading Lukka’s Series C funding round in late 2020, State Street partners with the firm to offer new digital asset services.
Major American financial services and bank holding company State Street Corporation is expanding its push into the cryptocurrency industry by launching new digital asset services.
State Street, the second-oldest operating bank in the United States, announced Thursday that it would provide digital and crypto asset administration services for the company’s private funds clients. The bank will enable its private fund clients to access a set of institutional-grade middle- and back-office offerings that support diversified portfolios, including crypto-related features like collection, standardization, reporting, processing and reconciliation.
To unlock the services, State Street signed an agreement with Lukka, a U.S.-based blockchain data and software provider focused on reporting audit-ready data on cryptocurrency transactions. State Street is known as a major investor in Lukka, leading the company’s Series C funding round in December 2020.
As part of the partnership, State Street will provide access to a set of Lukka’s proprietary products, including middle- and back-office data management solutions designed for blockchain and crypto-asset data, as well as reference and pricing data. It will allow State Street to consume crypto assets mixed within a private client’s traditional alternative investments portfolios, providing digital assets with the same quality and precision as traditional assets.
The news comes shortly after Street Digital launched a new division dedicated to cryptocurrency and digital assets last month. Called State Street Digital, the new unit is focused on research and tools related to cryptocurrency, blockchain technology, central bank digital currencies, and tokenization.
Related: BNY Mellon joins State Street to service new crypto exchange
“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 Digital director Nadine Chakar said.
Headquartered in New York, Lukka is known as a major player in the digital asset industry in the United States. S&P Dow Jones Indices — a joint venture between S&P Global, the CME Group and News Corp — launched crypto indexes using Lukka’s technology earlier this year.
State Street Corp., one of the world’s leading providers of financial services to institutional investors, has announced the expansion of its crypto services in partnership with Lukka, an enterprise crypto asset data and software provider. State Street Launching New Crypto Services State Street Corp. announced new cryptocurrency services Thursday. The financial services firm “will provide […]
Traditional financial institutions like State Street and BNY Mellon continue to get involved in the fast evolving cryptocurrency space.
Bank of New York Mellon is joining a new cryptocurrency initiative by offering its custody support to a new crypto exchange backed by the American bank State Street.
According to a Wednesday report by the Financial Times, BNY Mellon has joined a consortium of six banks behind the launch of London-based Pure Digital, a new crypto trading platform venture that is scheduled to execute its first Bitcoin (BTC) trade in the near future.
The upcoming crypto venture came under the industry’s spotlight in April, with State Street announcing plans to provide its trading infrastructure to Pure Digital exchange through its foreign exchange technology subsidiary Currenex. The institutional-grade platform is expected to be a fully automated over-the-counter market for cryptocurrencies, featuring physical delivery and bank custody.
According to the report, BNY Mellon and State Street, alongside other unnamed banks behind Pure Digital, will create a cash cryptocurrency trading venue in a bid to compete against larger industry players. “We have spoken to all the top-tier banks but we think custody banks were some of the first to see demand, so they are now more advanced,” Pure Digital CEO Lauren Kiley said.
Pure Digital co-founder Campbell Adams reportedly noted that the firm expects to roll out trading “within a week,” with the first trade tentatively involving a Bitcoin trade. The exec also said that Pure Digital is not worried about collaborating with banking institutions, expressing confidence that the bank's contribution is important for the industry’s adoption. “The crypto market needs banks, I don’t think it can scale without them,” he stated.
Related: Goldman Sachs’ crypto trading desk expands to Ether
The latest news marks another milestone for cryptocurrency adoption by financial institutions in the United States, with both BNY Mellon and State Street becoming increasingly engaged in the industry. After announcing crypto custody plans in February, BNY Mellon continued moving into crypto, last week becoming an exchange-traded fund service provider for major crypto asset manager Grayscale Investments.
State Street is known for its digital currency collaboration with Winklevoss’ Bitcoin exchange Gemini. Last month, the bank launched a dedicated digital finance division focusing on cryptocurrency, blockchain technology and central bank digital currencies.
The second-oldest continuously operating U.S. bank, State Street, has launched a new division dedicated to cryptocurrency and digital assets.
Multi-trillion dollar asset manager, State Street Corporation, has become the latest financial institution to announce the launch of a dedicated digital finance division.
State Street, the second-oldest continually operating bank in the United States, announced the move on Thursday, June 10, highlighting the division’s focus on cryptocurrency, blockchain technology, central bank digital currencies (CBDCs), and tokenization.
”The financial industry is transforming to a digital economy, and we see digital assets as one of the most significant forces impacting our industry over the next five years,” asserted State Street CEO and chairman, Ron O’Hanley. He added:
“Digital assets are quickly becoming integrated into the existing framework of financial services, and it's critical we have the tools in place to provide our clients with solutions for both their traditional investment needs as well as their increased digital needs.”
The firm’s head of global markets, Nadine Chaker, will head the division and report its operations to COO Lou Maiuri. “State Street has a major role to play in the evolution of digital market infrastructure,” said Chaker.
The company hopes to expand its proprietary GlobalLink technology into a platform supporting multiple digital assets, including peer-to-peer functionality.
State Street currently boasts $3.6 trillion worth of assets under management and $40.3 trillion in custodied assets, and is the second major global custodian to launch digital asset services, following in the footsteps of BNY Mellon.
Related: $157B Victory Capital plans to enter crypto market
The creation of the new division is not State Street’s first foray into digital assets, with the firm having been appointed as the administrator of a German Bitcoin-backed exchange-traded note (ETN) from Iconic Funds in April. That same month, the firm invested in a $30 million Series B round for blockchain-based fintech and regtech firm, Securrency.
State Street was also named as administrator and transfer agent for a Bitcoin exchange-traded fund (ETF) proposed by VanEck in the United States during March. The firm also teamed up with Gemini in 2019 to trial automated reporting services for its custody customers.
