- State Street and Pure Digital are creating an institutional digital currency trading platform.
- State Street’s Currenex provides its trading technology to Pure Digital to create the venue.
- The two companies also said that they “intend to further explore the digital currency trading space.”
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The second-oldest bank in the United States, State Street, announced on Thursday that it will partner with Pure Digital to create a “one-stop digital currency wholesale trading platform” for institutions.
Specifically, State Street’s Currenex will provide the underlying trading technology for Pure Digital’s “fully automated broadband OTC market for digital assets and cryptocurrencies with physical delivery and bank custody.”
Currenex previously provided cutting-edge technology to the FX community.
Pure Digital and State Street also said they “intend to further explore the digital currency exchange space,” in a Press release Thursday.
The platform will go live in mid-2021, according to Pure Digital.
“We are excited to partner with FX industry leader Currenex on this initiative as we work to bring FX infrastructure to the crypto space through a bank-led consortium.” Lauren Kiley, CEO of Pure Digital, said in A declaration announcing the partnership on Thursday.
Lauren Kiley also said CoinDesk that “State Street is one of many banks that will use this platform” to trade crypto.
The bank had $3.15 trillion in assets under management in the third quarter of 2020.
State Street’s decision to partner with Pure Digital comes amid a boom in the crypto market.
The total value of the cryptocurrency market topped $2 trillion for the first time this week, and crypto exchange Coinbase saw an 840% increase in revenue in its first quarter report on Tuesday. The company plans to list on Nasdaq on April 14.
State Street is also not the only bank entering the crypto space.
Goldman Sachs has announced that it will begin offering bitcoins and other digital assets to its retail clients as early as the second quarter of this year. The bank also restarted its cryptocurrency trading desk in the second week of March.
Goldman CEO David Solomon even said in a CNBC Interview said on Tuesday that his bank would “help customers facilitate custodial positions in digital assets.”
Solomon added that at the moment “there are significant regulatory restrictions around us and we are acting as a principle around cryptocurrencies like bitcoin,” but said he expects “a big evolution of US crypto regulation in the coming years.