State Street, the second-oldest bank in the United States is collaborating with London-based Puremarkets to launch a cryptocurrency trading platform. Through the collaboration, Puremarkets Ltd. will utilize State Street-owned foreign exchange tech provider Currenex’s trading and tech infrastructure for launching the new crypto trading platform called Pure Digital.
State Street is going to provide the infrastructure for the new bank-grade cryptocurrency trading platform set to go live mid-year.
The bank’s Currenex trading technology arm is collaborating with a crypto startup to create an institution-focused digital currency trading platform called Pure Digital.
Currenex is a leading tech provider offering high-performance trading technology.
Per the announcement, Pure Digital will be a fully automated over-the-counter market for digital assets and cryptocurrencies, with physical delivery and bank custody.
The new platform will reportedly allow institutional investors to trade using bilateral credit and multiple custody solutions.
David News, Global Head of Execution Services for GlobalLink, State Street Global Markets, said:
“Currenex is thrilled to leverage our experience and expertise in the FX and digital asset trading marketplace to provide Pure Digital with robust technology and infrastructure for this exciting digital currency trading initiative.”
State Street is one of the largest asset management companies in the world with $3.1 trillion under management and $38.8 trillion under custody and administration. The institution ranks 14th as the largest bank in the U.S. by assets.
Earlier this year, the oldest bank in the U.S. Bank of New York Mellon announced plans to provide cryptocurrency custody services for its clients. Other banking giants too followed the suit.
for instance, Morgan Stanley enabled its institutional clients to have BTC exposure by launching three funds. It even filed to buy Bitcoin for 12 of its own funds. Simultaneously, Goldman Sachs, CEO, David Solomon has recently said on the growing demand of cryptocurrencies from their clients.
In recent years, State Street has been actively exploring the cryptocurrency industry. In 2019, the bank announced a digital asset pilot in collaboration with crypto exchange Gemini. The pilot combined Gemini Custody with State Street’s back-office reporting.