- Plans to Include Crypto Custody Services
- Launching New Crypto ETFs
- German Bank to Offer Crypto Custody Services
State Street, a leading global financial services provider, has partnered with Swiss-based digital asset infrastructure provider Taurus to enhance its cryptocurrency custody and tokenization capabilities.
Plans to Include Crypto Custody Services
State Street plans to begin tokenizing assets through its collaboration with Taurus. The tokenization process involves converting physical or traditional financial assets into digital tokens that can be traded and managed on blockchain platforms. Meanwhile, its digital asset custody services remain on hold pending favorable regulatory developments in the United States. Specifically, the bank has been a prominent critic of the SEC’s Staff Accounting Bulletin (SAB) 121, which imposes stringent capital requirements on banks seeking to hold cryptocurrency. State Street calls for a revision of SAB 121, arguing that the rule burdens banks and stifles innovation in the digital asset space.
Launching New Crypto ETFs
Recall that two months ago, State Street Global Advisors (SSGA) and crypto investment firm Galaxy Digital planned to introduce a new line of crypto-based exchange-traded funds (ETFs). In their joint announcements, both firms noted the rising demand for digital asset exposure from institutional and retail investors alike. According to a new filing with the U.S. Securities and Exchange Commission (SEC), they have proposed the SPDR Galaxy Digital Asset Ecosystem ETF, which intends to invest in a diverse array of publicly traded companies within the crypto sector, including exchanges, mining firms, hardware wallet providers, and crypto-focused venture capital firms.
German Bank to Offer Crypto Custody Services
In April, Landesbank Baden-Wűrttemberg, the largest federal bank in Germany, affirmed its intention to introduce cryptocurrency custody services in the latter half of 2024. Partnering with Austria’s Bitpanda cryptocurrency exchange, the bank will cater to the growing demand for digital asset custody among its institutional clients. Jürgen Harengel, managing director of corporate banking at the bank, highlighted increasing interest from corporate customers in digital assets, prompting the bank to venture into crypto custody solutions.
The announced steps show the willingness of major financial institutions like State Street and Landesbank Baden-Wűrttemberg to adapt to new opportunities presented by digital assets.
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