Working in partnership with software provider Lukka, State Street will offer collection, reconciliation, processing and reporting related to crypto and other digital assets.
BNY Mellon and State Street join four other firms in backing the platform.
Some analysts are optimistic while others prefer to see stronger signs of upside momentum before calling a bottom.
State Street says it plans to evolve into a “multi-asset platform” to support cryptocurrency trading and more.
U.S. Bank could be the proverbial “one to watch” in the digital asset space, says Securrency Chief Strategy Officer Patrick Campos.
The plan is to transpose FX infrastructure to the crypto space via a bank-led consortium.
The global custodian would custody ETF shares and provide fund accounting if the ETF approved by the SEC.
Lukka is looking to go mainstream with a strategic investment from three stalwarts of traditional finance.
Mutual fund giant Vanguard has completed another blockchain pilot that aims to change the risk profile of foreign exchange transactions.
Vanguard worked with blockchain startup Symbiont, BNY Mellon, Citi, State Street and others to model the full lifecycle of digital ABS settlement.
Data privacy startup Manetu goes live early next month with $3.5 million in backing from Castle Island Ventures and others.
The majority of asset managers that bank with State Street are interested in digital assets, but none have asked the global custodian to store them yet.
Moiz Kohari, State Street's global chief technology architect, has left to build a new data privacy startup.
Elaine Sun Ye Lin, former head of compliance for the Chinese branch of global bank State Street, has joined Huobi as compliance director.
State Street bank says there's no sense of urgency yet from clients for it to move into safeguarding crypto assets.