Administering back-office services for cryptocurrency ETFs will play a big part in State Street’s attempt to generate significant new business from asset managers’ and institutions’ ardour for digital assets and blockchain, executives said last week.
Providing such services for bitcoin and other cryptocurrency ETFs in the US and globally is one area in which the firm wants “to go deep” with State Street Digital, the digital-finance unit it launched earlier this month, said Eric Aboaf, chief financial officer at State Street, during last week’s Morgan Stanley US Financials Conference. The new division will focus on cryptocurrency, central bank digital currency, blockchain and tokenisation, the company said.
“That’s a land grab that we think is particularly important . . . and one where we’re focused on [market] share and execution,” Aboaf said.
State Street is focused on growing its service workload with existing large asset managers and expanding into new markets, noted Aboaf and Francisco Aristeguieta, the company’s chief executive of institutional services, during a joint presentation.