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State Street enters crypto space with trading technology deal

Published 08/04/2021, 12:00
Updated 08/04/2021, 12:02
© Reuters.

By Samuel Indyk

Investing.com – State Street (NYSE:STT), the US-based asset manager, has announced a deal with Puremarkets, whereby it Currenex platform will provide its trading infrastructure to the Pure Digital platform. Further to this, State Street Bank & Trust and Pure Digital intend to explore the digital currency trading space via the Pure Digital platform based on an existing letter of intent between the parties.

State Street’s Currenex is a technology provider that offers high performance technology for anonymous and disclosed trade execution. The agreement will enable the rapid set up of the Pure Digital platform using Currenex’s technology and trading should begin this year.

“It is an important step for Pure Digital that one of the leading banks in the world is now publicly declaring their support for Pure Digital,” said Torbjørn Bull Jenssen, CEO or Arcane Crypto, a 37.5% shareholder in Puremarkets.

Pure Digital platform

The Pure Digital platform will provide a trading venue for tier 1 investment banks to trade Bitcoin and other digital assets. The company is in discussions with several tier 1 institutions to use the platform which will provide a market for digital assets and cryptocurrencies with physical delivery and bank custody.

With State Street the latest financial behemoth to enter the cryptocurrency space, it becomes more obvious that institutions are having a major impact on the prices of cryptocurrencies this year. Already in 2021 Bank of New York Mellon (NYSE:BK) announced the launch of custody services for cryptocurrencies while Goldman Sachs (NYSE:GS), Fidelity Investments and Morgan Stanley (NYSE:MS) have all announced tentative steps into the industry in recent months.

“Big asset managers want to get involved in cash cryptocurrency markets and banks want to act as conduits,” said Pure Digital founder Campbell Adams. “We are hoping to bring the two sides together.”

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