Advancing Our Servicing Capacity
Essential Solutions for Holding and Trading Digital Assets
To support our clients’ needs in the growing digital economy, we provide a set of administrative services for fund structures investing into more than $1 billion of crypto assets.
Our services include issuing and paying agent, transfer agency, order taker, fund administration services and basket creation. To stay ahead of the fast-changing market, we have moved to the proof of concept and sandbox testing stages in several areas of digital asset servicing*:
Digital Asset Services
Mirroring our long-established global custody offering, we are building a leading digital asset network by harmonizing our operating model and providing our clients with a seamless experience to hold traditional and digital assets. We are working on a service that allows clients to store digital assets, starting with bitcoin and ether, in a segregated safekeeping account, offering services first in Germany, the US and Canada, and later expanding across other jurisdictions and assets.
State Street is a founding member of Fnality, a payment solution providing a digital cash asset backed 1:1 by Central Bank deposits. Fnality has already applied to open one of the Bank of England’s new Omnibus accounts, that enables account holders to settle transactions in central bank money through a wide range of innovative payment services.
In addition to investing in specialist firm Securrency to further enhance our tokenization efforts, State Street Digital has created a range of tokenization solutions for use in areas from the lifecycle of trades to collateralization. Our industry firsts include: proof of concepts for tokenizing fund shares in partnership with asset managers; automating the over-the-counter lifecycle of foreign exchange non-deliverable forwards (NDFs); and digitized trade processing on our front-to-back platform, State Street AlphaSM, which provides easy access to aggregated data, analytics and real-time insights in one place.
Digitization will affect trading on many levels, from facilitating complete automation to the emergence of peer-to-peer and decentralized finance (DeFi) models, as well as funding model considerations. We are building cryptocurrency trading infrastructure that is scalable, resilient and secure, and allows for capital-efficient trading. State Street is uniquely placed to meet the needs of the institutional market given our extensive e-trading experience. We have been actively enhancing our FX trading software platform, Currenex®, as a solution to power institutional crypto markets. Currenex is already providing the infrastructure for Pure Digital, a UK-based over-the-counter crypto trading platform for institutional investors.
*The development, release and timing of any product, features or functionality described remain at the sole discretion of State Street and are subject to the firm’s internal governance and due diligence approval process.