State Street Corporation has partnered with New York-based cryptocurrency exchange and custodian Gemini Trust Company to launch a digital asset pilot.
The pilot carries out reporting scenarios on a user’s holdings within Gemini custody, in what State Street has called the first trial of its kind.
Initially, the pilot only reports holdings of two cryptocurrencies for liquidity reasons but it can be adapted to report holdings of other digital assets, such as security tokens, according to the funds house.
Combining Gemini custody and State Street back office, the programme allows users to consolidate the reporting of their digital assets serviced by Gemini alongside their traditional assets serviced by State Street.
According to the fund manager, the digital asset space is still in its early days but it promises opportunities.
Ralph Achkar, managing director of product development and innovation, said: “There is small but growing demand from our clients for solutions of this type and many technical, operational, regulatory and legal considerations need to be addressed.”
For this reason, Achkar said in statement, the firm has opted for an open model and started the pilot with Gemini, which is already an established player in the digital asset space.
Tyler Winklevoss, chief executive of the crypto exchange, said: “Traditional investors will more seamlessly be able to allocate capital in their portfolio to digital assets through trusted and regulated financial institutions.”
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