State Street and Citi are considering offering Crypto Custody Services. Reports from the information show that banks aim to provide security solutions to institutional investors, traders and large-scale funds.
Bank officials told the report that State Street is scheduled to deploy crypto protection services next year. The institution is one of the world's largest managed banks for traditional assets such as stocks and bonds.
Additionally, the report says BNY Mellon, which already provides custody services to Bitcoin (BTC) and Ethereum (ETH), is looking to expand its product to include a wider range of tokens.
Traditional financial institutions are increasingly involved in crypto, and this involvement is not limited to banks. Coinbase has also been reported in discussions with banks about crypto transactions and custody cooperation.
City expands to crypto
Citi, the third largest US bank by assets, is also investigating entry into the custody space of crypto.
According to sources cited in the report, the bank giant is considering a double approach. It develops its own custody services while building partnerships with external companies.
This news follows City's success completion Proof of Concept (POC) for Symbolicization Private funding in collaboration with Wellington Management and WisdomTree. The pilots leveraged the test subnets of the avalanche spruce facility, and Abn Amro simulated the role of traditional investors.
Citi said the experiment attempted to address the inefficiencies of the private market by bringing a private equity fund issued by Wellington into the blockchain network and embedding fund distribution rules into smart contracts.
The pilot also tested using private fund tokens as collateral for loan agreements with DTCC digital assets.
Expected travel
Alex Thorn, director of research at Galaxy Digital, says that large banks like Citi will move to crypto services due to growing institutional interest in digital assets and the crypto-friendly regulatory environment under the current administration I predicted that it would start to do so.
The company's forecast for 2025 is I said The top four Custody Banks will add crypto-related services this year, and the Currency Secretary (OCC) will create a route.
Of the four banks Thorn mentioned, only Jpmorgan has yet to announce Crypto Custody Services.
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