Financial Giant State Street Sees Unusual Cryptocurrency Demand From Institutional Investors – Bitcoin Funding News

Financial Giant State Street Sees Unusual Cryptocurrency Demand From Institutional Investors – Bitcoin Funding News

Investment management firm State Street says institutional clients are not deterred from investing in crypto assets despite the low prices. “There is a belief that the asset class is here to stay,” said a State Street executive.

State Street on Institutional Demand for Cryptocurrency

State Street, a leading investment management firm, has reported unlimited institutional demand for cryptocurrencies despite the market sell-off, The Sydney Morning Herald reported on Monday.

Irfan Ahmed, State Street Digital’s head of product for Asia Pacific, said the banking giant’s institutional clients remain keen on crypto and its core technology. He was quoted as saying:

During the June-July period where things were very uphill in terms of activity, we saw institutional clients not necessarily doubling down, but they weren’t really deterred from placing strategic bets on the same asset class.

“The takeaway from that is, I think, there is a belief that the asset class is here to stay,” the executive emphasized.

State Street Corporation (NYSE: STT) operates in more than 100 geographic markets globally and employs nearly 40,000 worldwide. The financial services giant had $38.2 trillion in assets under custody and/or management and $3.5 trillion in assets under management as of June 30.

The company’s digital arm, State Street Digital, provides solutions for a range of digital assets, including cryptocurrencies, stablecoins, digital cash, and central bank digital currencies (CBDCs), according to its website.

Ahmed noted that a number of major investment firms, such as Goldman Sachs, have started offering crypto products and are likely to make more moves in the crypto space. In April, Goldman Sachs offered its first bitcoin-backed loan.

The world’s largest asset manager, Blackrock, launched a Bitcoin private trust in August. “Despite the sharp downturn in the digital asset market, we are still seeing strong interest from some institutional clients,” the company said.

The State Street CEO also shared that institutional clients have inquired about the launch of crypto products, explaining:

Certainly, our customers, they have spoken to us more realistically about how they are able to launch products, or what our capabilities are in the future to help them support the launch of these products.

In July last year, State Street announced the expansion of its cryptocurrency service, citing the growing demand from traditional funds.

Cryptocurrency exchanges are also seeing a surge in demand from institutional investors. Bitstamp’s CEO said in August that his trading platform was seeing “enormous interest in cryptocurrencies” from institutional clients. In June, Binance launched a new platform for VIPs and institutional crypto investors to increase support for institutional clients.

What do you think of the comments made by State Street executives about institutional interest in cryptocurrency? Let us know in the comments section below.

Kevin Helms

Kevin, an Austrian economics student, found bitcoin in 2011 and has been a missionary ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.

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