State Street has announced a partnership with Lukka to improve its middle tier and back-office capabilities for the administration and management of crypto assets.
This marks one more of the large-scale financial firms looking into tap into crypto not just out of curiosity or interest but based on a lot of demand from its users, both existing and new ones as well. This is believed to have forced the company to look for support and instead of trying to upgrade their own systems, the company has chosen to tie up with Lukka.
“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.
The company had recently launched State Street Digital, a division that would be focussing on managing the digital assets and it had also participated in the Series C funding round of Lukka, in what is being increasingly seen in investment circles where large companies invest in the same companies that they are clients of. It appears as though the two companies were already looking to tie up at that time and so it made business sense for State Street to invest in Lukka.
“As our clients continue to adopt digital assets, such as crypto, we’ve seen increasing interest among investors for institutional quality middle and back-office offerings that support diversified portfolios,” saidid Jen Tribush, alternatives lead for State Street Digital.“ Lukka was the ideal partner to help provide these services.”
State Street would look to piggyback on Lukka’s offerings and services, including the back-office capabilities, to help its existing and new clients onboard digital assets within the purview of the existing alternate investment portfolios that the company already offers.
This is one more indication of the size and the kind of demand that the crypto industry has been generating over the last couple of years and this year, we are seeing an enormous number of institutions onboarding crypto onto their platforms after being in denial for several years. This is likely to continue for the next couple of years with the crypto space expected to explode.