State Street to launch a digital-asset trading platform for banks

State Street, the second-oldest bank in the United States, will launch a digital-asset trading platform for financial institutions in mid-2021.

The initiative will be carried out by Currenex, the $3.1 trillion-assets technology provider for the foreign-exchange market within the group, in collaboration with the cryptocurrency marketplace Puremarkets.

Pure Digital will be a high-performance electronic trading system offering physical delivery of assets and custody by a custodial bank. Institutional investors will have access to two-way lines of credit and the option to assemble a counterparty list of their choosing.

Custodial services will be provided by several partners. Pure Digital users will be able to manage risk using an intelligent storage-routing mechanism.

CEO of the startup, Lauren Kailey, told CoinDesk in an interview that State Street would be one of the many banks participating in the platform.

Puremarkets founder Campbell Adams noted that Pure Digital will enable the digital assets market to grow and mature.

“There is a need for the participation of large financial institutions. There is basically no primary market at present. There are fragmented crypto exchanges with differing rules of interaction and systems. This leads to fragmented market data,” — he said.

State Street was among the first participants in the banking consortium R3 in 2015. In February 2016, the corporation joined the Hyperledger Project.

In 2019 the group launched a pilot project in the digital assets space in collaboration with the Bitcoin exchange Gemini.

Back in late 2020, State Street and the financial giant S&P Global led a funding round of $15 million for the cryptocurrency-data provider Lukka.

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