As crypto markets flourish, more and more banks and companies are starting to invest or trade them. Goldman Sachs, JP Morgan, BNY Mellon, and many other big names have joined this new industry in the past months. And now, State Street, the second oldest bank in the US with an estimated $3.1 trillion assets under management, has shown interest in trading in crypto. Do note that the bank has not issued any statement guaranteeing the crypto trading option. It says that they are “evaluating” the option.
State Street, the second-oldest bank in the U.S. with $3.1 trillion in assets under management, just announced plans to start trading crypto later this year.
A report suggests that the bank is building a new platform for banking and is testing the crypto trading option in it. The app is scheduled to be released by the end of the 2nd quarter of 2021. State Street has partnered up with Pure Digital to make this new platform possible. The bank’s main goal will be to build an app that lets users do foreign exchange trading. It will also be one of the major apps built by any bank.
The global head of the Execution services at State Street Global Markets said they are very excited about this new project. The bank’s trading platform Currenex is ready to use its experience in the digital trading market and build an excellent trading option for users. Even though State Street hasn’t explicitly confirmed their crypto trading plans, it does seem really obvious. On asked whether it plans to use the platform to do crypto trading, the bank said the idea is that. So, it is probable that we might even see State Street starting crypto trading by mid-2021 or at max by the year-end.
Future of crypto (especially Bitcoin)
If you have been following the news in the past few months, it will be very obvious to you that banks have started to embrace crypto. The biggest banks in the US that deemed Bitcoin not fit to be called an asset have now started dealing with it. Then there are banks that even allow the option to purchase BTC from their arms. All this has led to a steep increase in the adoption rate of cryptocurrency. But still, this market is nascent and will need a lot of time to stabilize and mature.
In order to make that happen, State Street’s new platform will be a great way to start. Unlike the exchanges that are used for trading crypto, it will be based on industry-standard APIs and will be led by the banks. This will help in have a more unified market and prevent fragmentation. This is also why they are signing banks to get into the platform and work on it.
What are your thoughts on State Street getting into the crypto game? And do you think it will help boost the price of Bitcoin even further? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.