Solutions
Digital Asset Services
As the digital asset space continues to mature, we are building solutions to service, create and safekeep digital assets. Our vision is to enable core digital asset infrastructure for you and drive growth as a trusted provider of end-to-end solutions on a secure, interoperable blockchain.
We intend to provide you with an integrated solution across digital and traditional assets with a range of services:
Fund administration and accounting
We provide administration services for asset management clients with digital assets in their portfolio. This enables managers to track and account for digital assets alongside their traditional assets. We have existing relationships with data providers to serve asset managers who purchase digital assets on a variety of digital exchanges. Connectivity to a growing list of venues and new emerging product types are key considerations in our future roadmap to enhance our product offerings.
Our offering supports multiple assets classes across various jurisdictions. We are currently servicing providers that hold digital assets in their portfolios across hedge, asset owners and asset managers, as well as Bitcoin and Ethereum ETFs in the United States, and those who have ETFs/ETPs in Canada, Europe and Asia Pacific.
Tokenization as a service for both assets and fund structures
We have made significant progress on a number of tokenization proofs-of-concept, including a pilot using distributed ledger technology (DLT) to automate the calculation of margins and the pledging of related collateral for foreign exchange forward transactions. This reduces a counterparty’s operational costs and the need for margin calculation reconciliations. It can also help reduce risk-weighted asset requirements for a given transaction by allowing for near real-time collateral posting.
Custody
We are committed to developing and offering technologies for digital asset custody as the regulatory environment evolves. We are currently working on initiatives that will allow us to connect to private permissioned digital asset platforms as a custodian.
Digital cash
We are a founding member of Fnality International, a wholesale payment solutions group providing a digital cash asset, backed by central bank deposits. Our work with Fnality and central banks on their central bank digital currency (CBDC) projects is strengthening the institutional cash payment infrastructure and paving the way for further development in the future.
Why State Street
We have a long history in the custody space and are a Global Systemically Important Financial Institution with risk and regulatory frameworks that enable us to not only stay ahead of the curve, but also take a calculated approach to innovation in the best interest of our clients. We serve as a bridge between traditional custody and digital finance, with the goal of creating a seamless interoperable customer experience that reduces fragmentation and makes the transition as easy as possible.
