State Street launches digital asset pilot with Gemini
17 December 2019 London
Image: Shutterstock
State Street has launched a new digital asset pilot with the cryptocurrency exchange and custodian, Gemini Trust Company (Gemini).
The pilot builds on ongoing research and development in the digital asset space to combine Gemini Custody with State Street’s back-office reporting.
According to State Street, the pilot is the first of its kind and performs reporting scenarios on a user’s holdings within Gemini Custody.
Initially, the pilot will report holdings of two cryptocurrencies chosen for liquidity reasons, State Street explained, but it can also be adapted to report on holdings of other assets including security tokens.
This allows the user to consolidate the reporting of their digital assets serviced by Gemini, an independent digital asset custodian, with their traditional assets serviced by State Street.
Ralph Achkar, managing director, digital product development and innovation at State Street, commented: “Given State Street’s leadership position in asset servicing, this project felt like a natural extension of those services as we continue to explore and evaluate opportunities to provide innovative solutions to our clients.“
Achkar explained: “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’s CEO, Tyler Winklevoss, added: "Working with State Street is a major milestone for Gemini and digital assets as a mainstream asset class. 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."
The pilot builds on ongoing research and development in the digital asset space to combine Gemini Custody with State Street’s back-office reporting.
According to State Street, the pilot is the first of its kind and performs reporting scenarios on a user’s holdings within Gemini Custody.
Initially, the pilot will report holdings of two cryptocurrencies chosen for liquidity reasons, State Street explained, but it can also be adapted to report on holdings of other assets including security tokens.
This allows the user to consolidate the reporting of their digital assets serviced by Gemini, an independent digital asset custodian, with their traditional assets serviced by State Street.
Ralph Achkar, managing director, digital product development and innovation at State Street, commented: “Given State Street’s leadership position in asset servicing, this project felt like a natural extension of those services as we continue to explore and evaluate opportunities to provide innovative solutions to our clients.“
Achkar explained: “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’s CEO, Tyler Winklevoss, added: "Working with State Street is a major milestone for Gemini and digital assets as a mainstream asset class. 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."
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