State Street, a US financial services and bank holding company have announced on the 29th that it is expanding its services and launching a dedicated digital assets unit. It is the second oldest financial institution in the United States with total assets under management worth $3.5 trillion.
The company has partnered with Lukka, a crypto data services firm, to provide digital and cryptocurrency asset fund administration capabilities for its institutional clients. The company will employ Lukka reference and prime pricing data to offer support with the collection, standardization, enrichment, reconciliation, processing, and reporting related to crypto and other digital assets.
In a press release issued by the company, Nadine Chakar, head of State Street Digital said:
“The growth in popularity of digital assets is showing no signs of a slowdown and State Street Digital is committed to continuing to build out the necessary infrastructure to further develop our digital assets servicing models to help meet our clients’ growing demands.
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 is just another advancement in our digital solution set and marks a very exciting development.”
Apart from utilizing Lukka’s reference and prime pricing data, State Street will use Lukka’s product suite which includes ‘a proprietary middle and back-office data management solution, purpose-built for blockchain and crypto-asset data’.
Robert Materazzi, CEO of Lukka, said in the same statement:
“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. 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.”
This is not the first effort by the US giant to enter into crypto-space. Recently, the institution launched State Street Digital, a division focused on addressing the industry’s evolving shift to digital finance. State Street is also an investor in Lukka and participated in Lukka’s Series C funding round in December 2020.