US financial services giant State Street Corporation has launched a new business unit dedicated to the rapidly evolving financial sector. The firm released this news through a press release on June 10, noting that the new division is called State Street Digital. This unit will reportedly be led by Nadine Chakar, an industry expert with more than three decades of experience.
According to the press release, Chakar will report directly to State Street Corporation COO Lou Maiuri. Explaining the financial giant’s foray into the nascent sector, Ron O’Hanley, CEO of State Street, said that the financial industry is rapidly evolving towards a digital economy. The firm believes that digital assets will be a significant force transforming the financial sector in the coming years.
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O’Hanley added that the financial services infrastructure is rapidly incorporating digital assets into its plumbing. To this end, State Street decided to dive into the burgeoning asset class to add tools that will help it provide its clients with solutions for their traditional investments as well as their digital needs.
Bridging the gap between the current financial system and the future
According to the post, the new division will leverage State Street’s current digital capabilities to leverage cryptocurrencies, central bank-issued digital currencies, blockchain, and tokenization. State Street Digital will comprise State Street’s proprietary technology, GlobalLink. The company intends to turn it into a platform that hosts multiple digital currencies.
Through this platform, the firm also intends to shore up its peer-to-peer objectives by creating new liquidity channels for its clients and investors around the world. According to Chakar, the company has been developing multiple digital capabilities and other solutions, forging new partnerships, and investing in the infrastructure that supports State Street Digital.
He added that State Street has an important role to play in transforming the digital market infrastructure, and this new division will help it achieve just that. Chakar went on to note that State Street aims to help its clients bridge the gap between today’s financial industry and tomorrow’s.
This news comes as State Street continues to become increasingly involved in the fledgling crypto space. Prior to this, the company announced that VanEck had appointed it as the manager and transfer agent for its Bitcoin exchange-traded fund (ETF). Apart from this, the firm revealed that Iconic Funds had chosen it as the administrator of its planned Bitcoin. (BTC) publicly traded promissory note (ETN).
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