America’s second oldest bank, State Street, says there is a “high level of interest” in cryptocurrency from its customers. However, those customers are not rushing into the market.
State Street’s managing director, Jay Biancamano, said there was “no sense of urgency on the part of our clients to move into these assets right now.” In particular, State Street is seeing little demand for crypto custody – whereby an institution would safely store digital assets on behalf of its customers:
“Currently none of our clients are looking for us to house these assets in custody.”
Crypto custody is a hot topic on Wall Street right now. Fidelity is reportedly launching a crypto custody and exchange platform for its customers, while Goldman Sachs is also exploring ways to hold crypto assets.
Despite the cautious tone, Biancamano said his firm is “blockchain friendly:”
“We do talk to our clients who are interested in doing this and we are looking at this very closely. But we are not putting a sign that we are opening for business. That said, we are a blockchain-friendly firm; we are very involved in the vertical.”
State Street might not be throwing its arms around crypto just yet, but they will be ready when the next wave arrives. “There is no sense of urgency on the part of our clients to move into these assets right now. When they do, we want to meet them there.”
Further reading: Wall Street is Coming to Crypto; Nasdaq’s Bitcoin Futures Explained