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Financial Giant State Street Expands Cryptocurrency Services as Demand From Traditional Funds Soars

State Street Corp., one of the world’s leading providers of financial services to institutional investors, has announced the expansion of its crypto services in partnership with Lukka, an enterprise crypto asset data and software provider.

State Street Launching New Crypto Services

State Street Corp. announced new cryptocurrency services Thursday. The financial services firm “will provide digital and cryptocurrency asset fund administration capabilities for the firm’s private funds clients” in partnership with Lukka, the announcement details, adding:

State Street will support its private fund clients with collection, standardization, enrichment, reconciliation, processing and reporting related to crypto and other digital assets.

The Boston-headquartered financial services and bank holding company offers investment servicing, investment management, investment research, and trading services. State Street operates globally in more than 100 geographic markets. The company had $42.6 trillion in assets under custody and/or administration and $3.9 trillion in assets under management (AUM) as of June 30.

The financial services firm recently launched State Street Digital, a division focused on addressing the industry’s evolving shift to digital finance. It also led Lukka’s Series C funding round in December of 2020.

Nadine Chakar, head of State Street Digital, commented:

The growth in popularity of digital assets is showing no signs of a slowdown … Our work with Lukka will leverage their software and data in order to help expand our digital and crypto asset fund administration capabilities to alternative managers.

Specifically, State Street will leverage Lukka’s product suite, which includes a proprietary middle and back-office data management solution, Reference Data, and Prime Pricing Data.

Jen Tribush, alternatives lead for State Street Digital, opined: “As our clients continue to adopt digital assets, such as crypto, we’ve seen increasing interest among investors for institutional quality middle and back-office offerings that support diversified portfolios.”

Lukka CEO Robert Materazzi described: “Large, traditional funds are rapidly looking to add crypto to their offerings, which leads them to ask their existing, trusted service providers such as State Street for fund administration.” He added: “State Street was quick to recognize the importance of building capabilities to support crypto assets and we are proud to partner with them as funds quickly look to diversify their portfolios.”

What do you think about State Street expanding its crypto services? Let us know in the comments section below.



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