State Street interested in custody and security services

According to CoinDesk, the State Street investment company claims that investments in digital assets will increase by 2020.

According to a survey to be released next week, 94% of State Street customers own digital assets or related products (for example, bitcoin futures). 38% of them said they will increase the allocation of funds in digital assets by 2020.

45% said the allocation would remain the same, according to the survey conducted for the bank this year by the analysis firm Oxford Economics.

State Street is one of the companies that strives to integrate digital assets into the financial system. Most administrators are interested in digital assets, such as bitcoin, but none have yet requested custody.

“We talk less about ‘You can provide custody’ and more about how we can work together to ensure that these changes do not affect our business models,”

said Jay Biancamano, General Manager of Street Street Digital Product Development and Innovation.

State Street interested in custody services

The company announced that, in addition to custody services, State Street is interested in analyzing fund management, private placements, issuing and trading digital assets.

Earlier this year, the bank laid off over 100 blockchain developers. The responsibilities of this team were separated from that of Biancamano. His team focuses on collaborating with clients and third parties around digital assets and tokenization.

“The custody and service around digital assets is different from building our entire backend infrastructure. We have prioritized technology development to support the Hyperledger blockchain, “

Biancamano said.

“We now plan to focus more on digital asset management and less on infrastructure.”

The State Street survey was conducted on a sample of 101 US asset managers. 62% of customers said that tokenization would improve risk management, and 55% said it would increase security. Only 36% of them said they would democratize investments for retail investors or increase liquidity.

More than half of respondents (62 percent) said the technology will be integrated into their trading process by 2020. Also, 65% said DLT will improve financing products.
“Honestly, institutions already have the capacity to invest in crypto funds,” he said.

“VanEck offers the option of private placement. WisdomTree has announced the possibility of investing on the Swiss stock exchange. I would like to see regulators become more comfortable with a bitcoin ETF … but I think the ability to invest in bitcoin in a fund or directly exists ”

Biancamano concluded.