Financial giant State Street sees unabated demand for cryptocurrencies from institutional investors – Finance Bitcoin News

Financial giant State Street sees unabated demand for cryptocurrencies from institutional investors – Finance Bitcoin News

Investment management firm State Street says it is not deterring institutional clients from investing in crypto assets despite falling prices. “There is a belief that the asset class is here to stay,” said the State Street executive.

State Street on institutional demand for crypto

State Street, a leading investment management firm, is seeing steady institutional demand for cryptocurrencies despite a market selloff, the Sydney Morning Herald reported on Monday.

Irfan Ahmad, State Street Digital’s head of product for the Asia-Pacific region, said the banking giant’s institutional clients are still enthusiastic about cryptocurrency and the technology behind it. He was quoted as saying:

During the June and July period, when things really picked up in terms of activity, we saw institutional clients not necessarily double down, but it didn’t really deter them from making strategic bets on the asset class itself.

“The takeaway from that, I think, is that there is a belief that the asset class is here to stay,” the CEO stressed.

State Street (NYSE: STT) operates in more than 100 geographic markets worldwide and employs approximately 40,000 people worldwide. The financial services giant had $38.2 trillion in assets under supervision and/or administration and $3.5 trillion in assets under management as of June 30.

The company’s digital arm, State Street Digital, provides solutions for a range of digital assets, including cryptocurrencies, stablecoins, digital cash and central bank digital currencies (CBDCs), according to its website.

Ahmad noted that a number of major investment firms, such as Goldman Sachs, have begun offering crypto products and are likely to make further forays into the crypto space. In April, Goldman Sachs offered its first loan with bitcoin.

The world’s largest asset manager, Blackrock, launched a spot bitcoin private trust in August. “Despite the sharp decline in the digital asset market, we are still seeing significant interest from some institutional clients,” the company said.

The State Street CEO further shared that institutional clients have been inquiring about the crypto product launch, elaborating:

Of course, our clients were talking to us more pragmatically about how they might launch products or what our capabilities might be in the future to help them support those product launches.

In July of last year, State Street announced expansion its cryptocurrency services, citing growing demand from traditional funds.

Crypto exchanges are also seeing increasing demand from institutional investors. CEO of Bitstamp said in August that its trading platform was seeing “massive interest in crypto” from institutional clients. In June, Binance launched a new platform for VIP and institutional crypto investors to increase support for institutional clients.

What do you think of the State Street executive’s comments about institutional interest in cryptocurrencies? Let us know in the comments section below.

Financial giant State Street sees unabated demand for cryptocurrencies from institutional investors – Finance Bitcoin News

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.




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