Banking Giant State Street Corp Delves Into Offering Crypto Services to Clients
The second-oldest operating bank in the United States bank, State Street Corporation has announced that it is expanding its crypto services in partnership with Lukka, an enterprise crypto asset data and software provider.
In an announcement on Thursday, July 29, the financial services said it "will provide digital and cryptocurrency asset fund administration capabilities for the firm's private funds clients."
Furthermore, "State Street will support its private fund clients with the collection, standardization, enrichment, reconciliation, processing and reporting related to crypto and other digital assets."
State Street is one of the world's leading providers of financial services to institutional investors. It is also among the largest asset management companies in the world, with US$3.1 trillion under management and US$38.8 trillion under custody and administration.
Freshly launched, State Street Digital is a division concentrated on addressing the industry's emerging shift to digital finance. It is in partnership with crypto data services firm Lukka.
Lukka basically provides software and data services for the back-office processing of cryptocurrency transactions, particularly tracking and calculating tax obligations. It offers institutions, including cryptocurrency trading platforms, investment fund administrators, trading firms and accountancies. Software for tax professionals and transforming decentralized data into ready to use formats are its core products.
The chair of State Street Digital, Nadine Chakar, commented, "The growth in popularity of digital assets is showing no signs of a slowdown … Our work with Lukka will leverage their software and data in order to help expand our digital and crypto asset fund administration capabilities to alternative managers."
Jen Tribush is the global head of alternatives product solutions for State Street Digital. She says: "As our clients continue to adopt digital assets, such as crypto, we've seen increasing interest among investors for institutional quality middle and back-office offerings that support diversified portfolios."
Robert Materazzi, the Chief Executive Officer of Lukka, described: "Large, traditional funds are rapidly looking to add crypto to their offerings, which leads them to ask their existing, trusted service providers such as State Street for fund administration."
Furthermore, he continued: "State Street was quick to recognize the importance of building capabilities to support crypto assets and we are proud to partner with them as funds quickly look to diversify their portfolios."
Lukka, founded in 2014, has raised $91.3M in funding over five rounds. Including State street investment in a $21 million Series C round in December 2020.
Materazzi wrote, "State Street is leading the charge to usher in the next generation of fund administration. Large, traditional funds are rapidly looking to add crypto to their offerings, which leads them to ask their existing, trusted service providers such as State Street for fund administration."