The second oldest bank in the U.S., State Street, will now be providing its private funds clients with crypto and digital asset fund administration services, the bank said in a press release on 30 July.
According to the announcement, the bank’s private funds clients will now be able to access a set of institutional-grade middle and back office crypto and digital asset offerings, which will support crypto collection, reconciliation, processing, and reporting. In order to release the new services, State Street partnered with Lukka, a blockchain data provider focused on reporting audit-ready data on crypto transactions. Jen Tribush, alternatives lead for State Street Digital, said in a statement:
“As our clients continue to adopt digital assets, such as crypto, we’ve seen increasing interest among investors for institutional quality middle and back-office offerings that support diversified portfolios. Lukka was the ideal partner to help provide these services given their leading position in crypto asset data as State Street continues to add to our growing offering in the digital asset space.”
The bank will use Lukka’s reference and pricing data, as well as its middle and back office products, to incorporate digital assets with its private clients’ other investments, while still providing the same quality and precision as with traditional assets. This is not the first time the two entities have interacted, with State Street leading Lukka’s $53 million Series D funding round back in March.
This is the latest sign of the growing adoption of digital assets among banks. Only last month, State Street launched a new division, State Street Digital, which is entirely focused on research and tools connected to crypto, blockchain, tokenization, and central bank digital currencies. The bank will also be providing the infrastructure for a new crypto trading platform called Pure Digital.