State Street Corp., one of the top asset management groups with $42.6 trillion worth of assets under management has announced it would start offering crypto reporting, reconciliation, and processing services to its private-fund clients. The asset manager has partnered with Lukka Inc., a crypto software service provider for its fund administration services who would also offer data for valuation services to the private fund clients.
State Street also launched a Digital subsidiary last month to focus on the company's services for cryptocurrencies, CBDCs, blockchain, and tokenization of Securities.
Nadine Chakar, the head of State Street Digital said,
“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,”
The crypto fund offering by State Street reaffirms the growing demand for crypto assets among wealthy institutional clients.
Financial Giants Continue to Venture in Crypto
The cryptocurrency market is currently recovering from its two months long bearish sentiment caused by the market crash in May. However, institutional investor demand has continued to soar throughout 2021. Some of the biggest financial giants on Wall Street have started offering crypto-related services based on growing client demand.
Even banking giants such as JP Morgan who were experimenting with blockchain for quite a long but maintained a safe distance from crypto-related investment services. However, it recently started offering Bitcoin funds for clients. Similarly, Goldman Sachs, another American banking giant that has been a crypto critic has opened BTC investment and also filed for Defi crypto ETF.
The rising interest of wealthy investors has also prompted regulators and politicians to act on crypto regulations. While wealthy investors continue to access the crypto market via safe investment vehicles, regulators worry small investors are at risk. The rising demand for cryptocurrencies this year is also visible from record funding rounds closed by several crypto companies, many of which achieved Unicorn status after their latest funding round.