The world’s largest custodian bank State Street & Citi Bank is launching crypto custody services, according to a report from The Information. State Street holds over $44 trillion in assets, while Citi holds around $2.14 trillion as of writing.
JUST IN: World's largest custodian bank State Street & Citi bank to launch crypto custody services.
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Banks across the United States are beginning to give more attention to the digital asset industry. With the Federal Reserve’s recent decision to let Banks make their own responsible decisions around housing crypto, multiple institutions are deciding to launch custody services. The addition of crypto ETFs in 2024 was also a huge help, as those have been successful since launch. State Street currently houses three actively managed digital assets and disruptive technology-focused ETFs sub-advised by Galaxy Asset Management.
Also Read: SEC Crypto Task Force Talks Integrating Staking into ETPs
“Digital assets and blockchain technology have the power to transform financial markets as well as the economy over the next decade, and a number of companies will grow and flourish thanks to their contribution to this transformative technology,” Anna Paglia, chief business officer for State Street Global Advisors, said last year. “Some investors are not comfortable with the short-term, volatile price swings of single-currency crypto. We believe the next evolution of this market is the introduction of actively managed digital asset portfolios that help investors tap into the benefits of diversification, which is appealing to a wider range of investors, and why we are excited to bring these three products to market.”
Other US banks and asset managers besides Citi Bank and State Street are already looking to house crypto products. BNY Mellon has received regulatory approval for digital asset custody beyond Bitcoin and Ethereum ETFs, while Standard Chartered launched a digital asset custody facility in Dubai. HSBC also recently announced plans for an institutional-grade custody service, and Crédit Agricole and Banco Santander’s joint venture secured crypto custody approval in France.