State Street, an American financial services giant, will create a new arm dedicated to cryptocurrencies, Nadine Chakar, who will lead State Street Digital, told the Financial Times. Chakar claims that the US custody bank is getting calls from "endowments and foundations" that are getting donations in cryptocurrencies and do not know what to do with it.
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"We are seeing companies that are thinking of adding crypto to their balance sheets," Chakar added.
The Boston-based bank, which currently has over $40 billion in assets, will launch a new digital unit in a cooperation with academic institutions on research projects and liaising with regulators.
"We will support everything in crypto services that we are allowed to support from a regulatory perspective. The level of communications back and forth with our regulators is intense," she emphasized.
Earlier in May, Goldman Sachs expanded its cryptocurrency offering with trading of non-deliverable forwards, a derivative that is pegged to the bitcoin (EXANTE: Bitcoin) price and paid out in cash. The bank protects itself from volatility by buying and selling bitcoin futures in block trades on CME Group Inc., via Cumberland DRW.
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