The institutional uptake of cryptocurrencies seems to be gaining traction by the day. The last few months have seen some of the largest financial institutions jump into the fray. Today, America’s second oldest bank, State Street, has announced building a Bitcoin trading platform. The new trading platform called Pure Digital will be created by the company’s tech provider, Currenex.
In a press release, the company stated that the new digital trading platform will be 100% automated and that it will have a high throughput for over-the-counter trading. It will also offer physical and banking custody, and that it would be set to be launched in the middle of the year.
According to the bank’s Global Head of Execution Services, the company is happy to be in a position to leverage its forex experience to build a robust platform for digital trading strategies. He added that the platform would offer multi-custodial services for those who decide to trust the platform.
This is in line with the growing demand for custodial services by institutional players. Through the platform, institutional players will use the platform for bilateral credit. The bank states that this will create an environment that has a more efficient capital allocation.
State Street’s entry into the market is a big deal, considering that it manages more than $3 trillion in assets. It is an indicator of institutional acceptance of cryptocurrencies and the possibility of better regulations in the U.S.