State Street Investment Management says institutional clients will continue to invest in crypto assets, despite the price drops. “There is a belief that the asset class is here to stay,” a State Street executive said.
State Street discusses Institutional Demand for Crypto
The Sydney Morning Herald reports that State Street, an investment management company, is seeing a strong institutional demand for crypto despite the market declines.
Irfan Ahmad, State Street Digital’s product lead for the Asia-Pacific region, said the banking giant’s institutional clients are still keen on crypto and its underlying technology. His quote was:
During the course of the June, July period where things were really hotting up in terms of activity, we saw institutional clients not necessarily double down, but they weren’t really deterred from placing strategic bets on the asset class itself.
“The takeaway from that is, I think, there is a belief that the asset class is here to stay,” the executive emphasized.
State Street (NYSE, STT) has operations in approximately 40,000 locations worldwide and operates in more that 100 markets. At June 30, 2013, the financial services company had assets totalling $38.2 Trillion under administration or custody, as well as $3.5 Trillion under management.
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 website.
Ahmad pointed out that many major investment banks, including Goldman Sachs have started offering crypto products, and will likely continue to do so. Goldman Sachs issued its first crypto-backed loan back in April.
The world’s largest asset manager, Blackrock, launched a spot bitcoin private trust in August. “Despite the steep downturn in the digital asset market, we are still seeing substantial interest from some institutional clients,” the firm said.
State Street executives shared with us that some institutional clients had inquired about crypto product launches.
Certainly, our clients, they’ve been speaking to us more pragmatically about how they might be able to launch products, or what our capabilities may be in the future to help them support the launch of those products.
State Street revealed the expansion of its crypto service in July 2017. The reason was high demand from traditional fund managers.
Institutional investors are increasingly interested in crypto exchanges. The CEO of Bitstamp said in August that his trading platform is seeing “massive crypto interest” from institutional clients. Binance, a platform that allows institutional and VIP crypto investors to invest in Binance’s trading platform launched it as a way for institutions to get more support.
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