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State Street Corporation and Winklevoss-owned Gemini Trust Company will test reporting on digital currencies in a new partnership.
American financial services and holding company State Street Corporation has announced a new partnership with the Gemini crypto exchange and custodian firm, to test a new product that will perform reporting scenarios on digital assets held in custody with Gemini.
According to the official State Street press release, the trial is the first of its kind and will first report on custody held on only two digital assets, citing issues with liquidity. The plan, however, is that the pilot will later be able to do the same for many other cryptocurrencies, including security tokens as well. The product will be a perfect way to consolidate Gemini-held digital assets in custody with traditional assets from State Street.
Speaking on the trial, State Street Managing Director in charge of Digital Product Development & Innovation Ralph Achkar said the product was necessary to satisfy a yearning among its customers. Achkar said:
“There is small, but growing demand from our clients for solutions of this type and many technical, operational, regulatory, and legal considerations to be addressed. That is why we have opted for an open model and started a pilot with Gemini as an established, regulated player in the digital asset space.”
Gemini CEO Tyler Winklevoss has described the partnership with State Street as a “major milestone for Gemini,” and ensured the safety of all clients’ funds as well as ease of capital allocation. Winklevoss said:
“With trillions of dollars in assets under management, State Street will never compromise on security – and neither will we. Traditional investors will more seamlessly be able to allocate capital in their portfolio to digital assets through trusted and regulated financial institutions – helping us build a better bridge to the future of money.”
State Street has recently expressed a desire to place a lot more focus on digital currencies. According to a Coindesk report, a large number of the bank’s clients that are asset managers, have said that they are interested in crypto custody. The company’s Managing Director of Digital Product Development and Innovation Jay Biancamano has said that the company is in conversation with a lot of these asset managers about going forward with a partnership that isn’t “disruptive to our business models.”
Its heavy pull towards digital assets could stem from a survey done on behalf of the bank by analysis company Oxford Economics. According to results from the survey, 94% of the bank’s clients currently hold cryptocurrencies as well as relevant products such as derivatives like futures. The study also reveals that 38% of its clients intend to increase their crypto holdings next year.
State Street Corp. is one of the oldest banks in the United States with roots traced all the way back to 1792. Today, it boasts of $32.90 trillion in assets under custody and assets under management sits at $2.95 trillion.