State Street has announced a new digital asset pilot in collaboration with Gemini Trust Company, a cryptocurrency exchange and custodian.
The pilot is looking to combine Gemini’s custody services with State Street’s back office reporting. Initially, it will perform reporting scenarios on users’ cryptocurrency holdings within Gemini Custody, but it can be adapted to report on holdings of other digital assets, such as security tokens. The pilot will allow users to consolidate the reporting of their digital assets serviced by Gemini, an independent digital asset custodian, with their traditional assets serviced by State Street.
“We want to evolve our business with our clients’ needs. The digital asset space is still nascent, yet it promises opportunities that could fundamentally impact how we do things in the future,” says Ralph Achkar, managing director, digital product development and innovation at State Street.
He adds: “There is small, but growing demand from our clients for solutions of this type and many technical, operational, regulatory and legal considerations to be addressed. That is why we have opted for an open model, and started a pilot with Gemini as an established, regulated player in the digital asset space.”
“Working with State Street is a major milestone for Gemini and digital assets as a mainstream asset class. With trillions of dollars in assets under management, State Street will never compromise on security – and neither will we,” says Tyler Winklevoss, CEO of Gemini. “Traditional investors will more seamlessly be able to allocate capital in their portfolio to digital assets through trusted and regulated financial institutions – helping us build a better bridge to the future of money.”