There’s been a reorganization at State Street Digital, the digital assets division at the bank, with the roles transferred to other parts of the company, according to sources that spoke to Bloomberg Law. There were also an unknown number of layoffs. The news follows the issuance of 11 spot Bitcoin ETFs, with not a single one using a bank for custody of the cryptocurrency. That’s partly the result of regulatory hurdles for banks.
At the end of 2023, the State Street Digital division had 100 full-time staff, a relatively small figure given its size – it has $40 trillion in assets under custody.
“In an effort to better deliver our digital expertise and solutions to clients, we have brought together our traditional custody and digital finance in a seamless interoperable customer experience,” State Street said in a statement. “This approach is reducing fragmentation for clients and is making the digital transition as easy as possible for investors. As part of integrating State Street Digital into our traditional custody product group, we have embedded key roles and functions into our broader custody product team.”
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