State Street, the world’s largest custodian and the second oldest American Bank with 226 years of market operations, recently acknowledged that a good part of its clients “have a very high level of interest” in the cryptocurrency markets.
State Street recently dethroned BNY Mellon, a firm that previously held the title of the world’s largest custodian for three straight years. The famous bank currently handles just over $33.12 trillion in assets under custody. State Street’s economic strength along with its long time in financial markets adapting to the generational changes that the United States has experienced attest not only to the growth of the cryptocurrencies but also to the “business authority” that such an important bank could use to give an excellent image to the crypto-money markets.
Speaking at the “Block|FS” conference (29-30 November 2018) in New York City, Jay Biancamano, a Managing Director for Digital Product Development and Innovation at State Street commented:
We follow our clients’ assets. We do talk to our clients who are interested in doing this, and we are looking at this very closely. But we are not putting a sign that we are opening for business. That said, we are a blockchain-friendly firm; we are very involved in the vertical.
Biancamano was part of a panel called “Crypto Custody: The Key to Unlocking Institutional Capital.” In it, he shared opinions with representatives of BitGo, BKCM, and Coinbase.
Biancamano commented that although there is no rush in the development of services based on blockchain technologies, State Street has not only shown interest in cryptocurrencies but in the wide range of possibilities offered by the various tokens that run in the blockchain with different uses and characteristics:
It’s not just about the current cryptocurrency; it’s also about tokenization and digitalization of traditional assets too.
State Street has shown a growing interest in the world of blockchain technologies. In fact, Biancamano is a crucial tool in State Street’s decision to adapt to this new trend. According to American Banker one of the key functions of Biancamano in State Street is precisely the development of products and services based on blockchain:
At State Street, Jay is focused on innovating new products and services based on cognitive and blockchain technologies. He previously held leadership roles at ITG, Liquidnet, Factset, and Fidessa.