US Custody Bank With $40 Trillion Assets Establishes 'Crypto' Division

State Street, a Boston-based custodian with $40 trillion in assets, has set up a digital division to offer crypto services in response to growing customer demand. The bank said that cryptocurrencies are at the tipping point and they will offer as many crypto services as possible under current regulations. The move was based on increased customer demand for crypto exposure. Nadine Chakar, who will lead the new digital division, said that many clients have increased their crypto exposures by 300% in the past two months, and the bank is trying to keep up with the huge demand. "We're at a tipping point right now where this is moving fast," he said. “We get calls from foundations and foundations that receive donations in crypto and tell us what to do with it? We see companies considering adding crypto to their balance sheets.” Chakar also revealed that they have an intense communication process with regulators to ensure their services adhere to regulatory policies. State Street joins the growing U.S. Custody Banks Association with its crypto arm State Street has become the second largest U.S. custodian bank to hold crypto after Bank of New York Mellon. Other major US banks joining the growing crypto league are Northern Trust and Standard Chartered. The announcement by the banks came weeks after Iconic Funds was appointed to serve as manager of a bitcoin-backed exchange-listed bond on the Frankfurt Stock Exchange. After being appointed as fund manager and transfer agent, State Streer also sought SEC approval to list VanEck's Bitcoin ETF. The SEC has previously delayed its decision on VanEck's ETF proposal, and Chakar thinks the SEC may take time. “We will continue to work with our customers if they need more time to get it right and give the industry the clarity we need. In this case, patience is a virtue. We will continue to be patient. $4 from U.S. Custody Bank

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