Financial Giant State Street Sees Steady Demand For Crypto From Institutional Investors Cryptocurrency
Investment management firm State Street says institutional clients are not deterred from investing in crypto assets despite the price drop. “There is a belief that the asset class is here to stay,” said a State Street executive.
State Street on Institutional Demand for Crypto
State Street, a leading investment management firm, is seeing continued institutional demand for the cryptocurrency despite market sell-offs, the Sydney Morning Herald reported on Monday.
Irfan Ahmad, State Street Digital’s product manager for the Asia-Pacific region, said the banking giant’s institutional clients are still interested in crypto and its underlying technology. He was quoted as saying:
During the June-July period when activity was strongly carried away, we saw institutional clients not necessarily redouble their efforts, but they were not really deterred from making strategic bets on the class of assets itself.
“The conclusion to draw from this is, I think, there is a belief that the asset class is here to stay,” the executive pointed out.
State Street (NYSE: STT) operates in more than 100 geographic markets worldwide and employs approximately 40,000 people worldwide. The financial services giant had $38.2 trillion in assets under custody and/or administration 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 site. website.
Ahmad noted that a number of major investment firms, such as Goldman Sachs, have started offering crypto products and are likely to make new moves in the crypto space. In April, Goldman Sachs offered its first bitcoin-backed loan.
The world’s largest asset manager, Blackrock, launched a private cash bitcoin trust in August. “Despite the sharp decline in the digital asset market, we are still seeing substantial interest from some institutional clients,” the company said.
The State Street executive further shared that institutional clients have inquired about the crypto product launch, stating:
Certainly, our customers have spoken to us more pragmatically about how they might launch products or about our future capabilities to help them support the launch of those products.
In July last year, State Street announced the expansion of its cryptocurrency service, citing growing demand for traditional funds.
Crypto exchanges are also seeing growing demand from institutional investors. Bitstamp’s CEO said in August that his trading platform was receiving “massive interest in crypto” from institutional clients. In June, Binance launched a new platform for crypto VIP and institutional investors to increase support for institutional clients.
What do you think of the State Street executive’s comments on institutional interest in cryptocurrency? Let us know in the comments section below.
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