U.S second-oldest bank State Steet is set to provide infrastructure for a crypto trading platform for banks. This has led to speculations that the bank could foray into crypto trading in the coming months.
State Street Providing Infrastructure for Crypto Trading Platform
It was revealed on April 8 that Currenex trading technology, a subsidiary of State Street, was working with London firm Pure Digital to create an institutional-based digital currency trading platform. The trading platform is part of the partnership between the two firms to explore the digital currency space. The trading platform expected to launch later in the year will offer institutions a regulated environment to trade cryptocurrencies.
Unlike a traditional crypto exchange, the trading platform is expected to be an over-the-counter exchange for banks. This is in line with the plan to integrate a forex exchange infrastructure into the crypto space using Forex industry-standard APIs and systems. The trading platform will offer bilateral credit lines, and banks will know who they are transacting.
It is understood that several banks could utilize the platform for trading purposes, including State Street bank. A statement from a spokesperson for the U.S bank revealed that the bank was currently evaluating the trading platform’s use.
David News, head of Execution Services for State Street Global Markets, spoke on the development. “Currenex is thrilled to leverage our experience and expertise in the FX and digital asset trading marketplace to provide Pure Digital with robust technology and infrastructure for this exciting digital currency trading initiative,” he said.
Institutions Slowly Moving to Cryptocurrency
Institutions in the financial sector are slowly but surely moving towards cryptocurrencies. The current bullish run appears to be driven by institutional adoption, unlike that of 2017 that retail investors drove.
Financial giants like BNY Mellon, Morgan Stanley, and Goldman Sachs have all made significant moves in recent months. Payment processing platforms are not left behind, with PayPal, Mastercard, and Visa offering different crypto services.
This is great news for the cryptocurrency space that was largely seen as a hub for criminals and shady financial activities. State Street offering cryptocurrency services will be a major plus for the cryptocurrency sector. It remains to be seen if the bank will venture into cryptocurrencies in the coming weeks.