By agreeing to provide its technology for a new crypto trading platform, State Street, the second-oldest operating bank in the United States is moving into cryptocurrency.
In order to provide its trading infrastructure and tech for the new crypto trading platform Pure Digital Currnex a forex technology provider owned by State Street, has entered into an agreement with Crypto firm Puremarkets.
To further explore the digital currency trading industry, Pure Digital has posited that they will partner with State Street.
For digital assets and cryptocurrencies with physical delivery and bank custody, Pure Digital will be fully automated over the counter market. Using bilateral credit and multiple custody solution, the new platform will allow institutional investors to trade. Through a smart custody routing mechanism, trading institutions participants will be free to leverage their preferred digital asset custody solution and manage risk.
State Street announced in late March that the bank has been exploring the role of Bitcoin (BTC) in multi-asset portfolios over the last nine years. “The case has yet to be made for Bitcoin as an equity hedge, though it may be heading in that direction. The key for investors is to combine their preferences for risk mitigation and upside potential with Bitcoin’s expected diversification and return properties to determine their optimal allocation,” the bank wrote.