State Street has joined forces with cryptocurrency exchange and custodian Gemini Trust Company for a digital asset pilot.
The pilot seeks to examine reporting scenarios on digital assets held within Gemini Custody. This will be done by integrating Gemini Custody with the back office reporting capabilities of State Street.
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Initially, the trial will report holdings of two virtual currencies. The selection of the two currencies is said to be based on liquidity reasons.
Plans are on to later extend the trial to include other digital assets including security tokens.
The pilot aims to devise a consolidated report on Gemini-serviced digital assets and traditional assets serviced by State Street.
State Street managing director of Digital Product Development & Innovation Ralph Achkar said: “We want to evolve our business with our clients’ needs. The digital asset space is still nascent, yet it promises opportunities that could fundamentally impact how we do things in the future.
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By GlobalData“There is small, but growing demand from our clients for solutions of this type and many technical, operational, regulatory, and legal considerations to be addressed.
“That is why we have opted for an open model, and started a pilot with Gemini as an established, regulated player in the digital asset space.”
Gemini CEO Tyler Winklevoss said: “With trillions of dollars in assets under management, State Street will never compromise on security — and neither will we.
“Traditional investors will more seamlessly be able to allocate capital in their portfolio to digital assets through trusted and regulated financial institutions — helping us build a better bridge to the future of money.”
Headquartered in Boston, Massachusetts, State Street focuses on providing financial services to institutional investors.
At the end of September 2019, the company had around $2.95 trillion in assets under management and $32.9 trillion in assets under custody and administration.
Last week, a survey by State Street noted that digital assets are here to stay.
