State Street, an investment management company, claims that despite price decreases, institutional clients continue to invest in crypto assets. According to a State Street official, “there is a belief that the asset class is here to stay.”
State Street on Crypto Institutional Demand
Despite market sell-offs, State Street, a top investment management company, sees unwavering institutional demand for cryptocurrencies, the Sydney Morning Herald reported on Monday.
State Street Digital’s product lead for the Asia-Pacific region, Irfan Ahmad, stated that the banking giant’s institutional clients are still interested in cryptocurrencies and the technology that powers them.
The CEO continued, “The takeaway, in my opinion, is that the asset class is widely believed to be here to stay.
State Street has over 40,000 employees worldwide and operates in over 100 different geographic markets. As of June 30, the massive provider of financial services had $3.5 trillion in assets under management and $38.2 trillion in assets under custody and/or administration.
According to its website, State Street Digital, the company’s digital division, offers solutions for a variety of digital assets, including cryptocurrencies, stablecoins, digital cash, and central bank digital currencies (CBDCs).
Ahmad pointed out that a number of significant financial companies, including Goldman Sachs, have started to provide cryptocurrency products and are poised to make more inroads into the market. Goldman Sachs made its first loan backed by bitcoin available in April.
In August, Blackrock, the biggest asset manager in the world, introduced a spot bitcoin private trust. The company claimed, “Despite the dramatic fall in the market for digital assets, we continue to receive significant interest from some institutional clients.
The State Street official went on to say that institutional customers had asked about introducing cryptocurrency solutions, explaining:
As a matter of fact, our clients have started talking to us more practically about how they might be able to launch products or what future capabilities we might have to support their product launches.
State Street announced the extension of its cryptocurrency business in July of last year, citing a surge in demand from traditional funds.
Institutional investors are increasing their demand for cryptocurrency exchanges. According to the CEO of Bitstamp, institutional clients are showing “huge interest” in cryptocurrencies on his trading platform.
In order to better serve institutional clients, Binance introduced a new platform in June for VIP and institutional cryptocurrency investors.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/10/25/financial-giant-state-street-sees-unwaning-crypto-demand-from-institutional-investors/