Today State Street said it now provides digital asset and cryptocurrency fund administration to alternative fund managers as part of its recently announced State Street Digital division. To do so, it has partnered with Lukka, a company in which it invested last year.
“The growth in popularity of digital assets is showing no signs of a slowdown and State Street Digital is committed to continuing to build out the necessary infrastructure to further develop our digital assets servicing models to help meet our clients’ growing demands,” said Nadine Chakar, head of State Street Digital.
“Our work with Lukka will leverage their software and data in order to help expand our digital and crypto asset fund administration capabilities to alternative managers is just another advancement in our digital solution set and marks a very exciting development.”
Lukka’s solutions cover data, accounting and tax reporting. Today State Street said it would use Lukka’s middle and back office data solutions. Additionally, it will use Lukka Prime Pricing Data and Lukka Reference Data which provides data such as crypto asset names, trading pairs. Other clients for the data solutions include IHS Market and S&P Dow Jones Indices (which are in the process of merging).
Existing clients are asking State Street to help manage their crypto-assets alongside conventional assets. State Street’s competitors are also responding, although it’s notable that State Street isn’t purely focused on custody in this announcement.
Just this morning, Zodia Custody, a partnership between Standard Chartered and Northern Trust, announced that it has gone into production.