State Street collaborates with Lukka to deliver new digital asset services after leading the firm’s Series C funding round in late 2020.
State Street Corporation, prominent American financial services, and bank holding firm, is growing its presence in the cryptocurrency market by releasing new digital asset services.
State Street, the United States’ second-oldest running bank, announced Thursday that it would begin offering digital and crypto asset administration services to its private funds’ clients. The bank will provide its private fund clients with institutional-grade middle- and back-office offerings that support different portfolios and include crypto-related capabilities such as collecting, standardization, reporting, processing, and reconciliation.
To enable the services, State Street entered into an arrangement with Lukka, a blockchain data and software company based in the United States that specializes in delivering audit-ready data on bitcoin transactions. State Street is a significant investor in Lukka, leading the company’s Series C financing in December 2020.
State Street will provide access to several of Lukka’s patented technologies as part of the agreement, including middle- and back-office data management solutions optimized for blockchain and crypto-asset data, as well as reference and pricing data. It enables State Street to consume crypto assets alongside traditional alternative investments in a private client’s portfolio, offering digital assets with the same level of quality and precision as conventional assets.
The announcement comes just one month after Street Digital formed a new branch devoted to bitcoin and digital assets. State Street Digital is a new unit focused on cryptocurrencies, blockchain technology, central bank digital currencies, and tokenization research and development.
“The growth in popularity of digital assets is showing no signs of a slowdown and State Street Digital is committed to continuing to build out the necessary infrastructure to further develop our digital assets servicing models to help meet our clients’ growing demands”
~ State Street Digital director Nadine Chakar
Lukka is a crucial player in the digital asset sector in the United States. S&P Dow Jones Indices – a joint venture between S&P Global, the CME Group, and News Corporation — debuted cryptocurrency indexes earlier this year utilizing Lukka’s technology.
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