Mainstream American investment management firm State Street Corporation has entered a partnership with Copper.co, a cryptocurrency custody firm, to offer crypto custody services to institutional clients.
State Street to Offer Crypto Custody Services
Crypto custody services are offered by firms who provide storage and security for the crypto assets of large investors.
According to a Bloomberg report on Wednesday, State Street will use Copper’s secure infrastructure to offer such services by year-end. The crypto custody firm will also enable State Street to hold other crypto assets aside from Bitcoin and Ethereum, for Institutional clients including Cardano (ADA), Solana (SOL), and Polkadot (DOT).
“Today we’re talking custody, but sky’s the limit,” Nadine Chakar, head of State Street Digital, said.
State Street’s crypto custody plans have been in the works since last June when it set up its digital unit. Last year, the investment management firm also launched crypto reporting, reconciliation, and processing services for private fund clients.
Nearly $4 Trillion in AUM
Founded more than two centuries ago, State Street Corporation is an American financial services and bank holding company based in Boston. It offers services such as investment servicing, investment management and investment research, and trading services.
The firm is one of the largest asset managers in the world with $3.9 trillion under management and $43.3 trillion under custody and administration.
Its partnership with Copper means that it has finally received the regulatory greenlight to offer crypto custody services to its clients.
Last month, the asset manager noted that it is working with regulators to get approval before offering crypto custodial services.
“The minute we get the nod, we’ll be ready. We’re literally investing in the future. We know clients are out there looking for this,” Chakar said last month in an interview with Bloomberg.
Chakar also added that there is significant interest in crypto by institutional investors and that with financial institutions joining the digital asset space, the asset class will become less volatile in the long run.
Wall Street Giants Dive into Crypto
Large financial institutions continue their foray into crypto in an effort to expand their product offerings as well as bring digital asset services to their clients.
State Street has now joined a growing list of Wall Street’s big players planning to or offering crypto services.
In February, American multinational investment management firm BlackRock revealed plans to offer crypto trading services to clients via its Aladdin (Asset, Liability, Debt and Derivative Investment Network) platform.
