As an increasing number of institutions allocate to cryptocurrency and explore blockchain solutions, State Street is launching a dedicated digital finance division, appointing the current head of global markets to lead it.
State Street Digital builds on State Street's existing digital capabilities, expanded to include cryptocurrency, central bank digital currency, blockchain and tokenisation.
The new business will be led by Nadine Chakar, currently head of global markets. As such, global head of portfolio solutions, FX sales and trading, and research for State Street Global Markets Tony Bisegna will step into the lead global markets role from September.
Commenting, Chakar said: "State Street has a major role to play in the evolution of digital market infrastructure and this new division will help us bring our expertise and resources to the conversation."
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"As digital currencies and tokenisation not only gain momentum, but transform financial infrastructure and operating models, we can help our clients bridge the gap between the industry of today and the one of tomorrow."
State Street's GlobalLink technology platform will be a central component of State Street Digital and will also be enhanced into a digital multi-asset platform, with the aim to support crypto assets among other asset classes.
"The financial industry is transforming to a digital economy, and we see digital assets as one of the most significant forces impacting our industry over the next five years," State Street Corporation chair and chief executive Ron O'Hanley said.
"Digital assets are quickly becoming integrated into the existing framework of financial services, and it is critical we have the tools in place to provide our clients with solutions for both their traditional investment needs as well as their increased digital needs."
State Street has been building its credentials in the digital finance space in recent years. In 2019, State Street AlphaSM, the industry's first front-to-back offering based on the principles of openness and interoperability, was launched.
And, so far this year, the company has been appointed as administrator of a planned bitcoin backed exchange traded note and as the fund administrator and transfer agent of the VanEck Bitcoin Trust, a new bitcoin ETF that is currently awaiting US regulatory approval.