State Street is announcing a new collaboration with Swiss cryptocurrency firm Taurus to introduce digital asset services to institutional investors.
According to Reuters, the partnership will enable State Street to offer custody services for cryptocurrency holdings and assist in creating tokenized versions of traditional assets, such as funds and securities.
[adinserter block="1"]The service targets asset management clients looking for support in tokenizing their funds, though no specific launch date has been announced.
In its recent proof-of-concept run, Taurus used oracle service Chainlink’s (LINK) cross-chain interoperability protocol (CCIP) to move stablecoins over different chains.
State Street aims to become a custodian for crypto assets in addition to tokenization, a role usually undertaken by cryptocurrency exchanges or wallet providers, according to the report. The bank is currently waiting for regulatory clarity on crypto custody accounting before moving forward in this area.
Says Donna Milrod, State Street’s chief product officer,
“We need to provide our clients the ability to deal with both traditional finance as well as (digital assets) side by side.”
The announcement comes as institutional interest in cryptocurrencies surged this year, driven by the introduction of several spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs).
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