The American depository and investment company State Street on Tuesday announced its cooperation with the Gemini cryptocurrency exchange as part of a test of reporting scenarios for working with digital assets.
During the project, the reporting process will be monitored when working with two cryptocurrencies: Bitcoin and Ethereum. These assets are in Gemini's wallets, which store them for the benefit of an unnamed customer. They were selected for liquidity reasons, but other digital assets can also be added to the system, including tokenized securities.
The project participants call it the first of its kind and expect that with their help they will be able to coordinate reporting for digital assets located on Gemini digital wallets with procedures in the area of traditional assets, where State Street operates.
With trillions of dollars in assets under management, State Street will never compromise on security – and neither will we. Traditional investors will more seamlessly be able to allocate capital in their portfolio to digital assets through trusted and regulated financial institutions — helping us build a better bridge to the future of money.
State Street previously conducted a survey among its customers and found that 38% of them intend to increase investment in digital assets in 2020.
There is small, but growing demand from our clients for solutions of this type and many technical, operational, regulatory, and legal considerations to be addressed. That is why we have opted for an open model, and started a pilot with Gemini as an established, regulated player in the digital asset space.
Managing director of Digital Product Development and Innovation at State Street
Previously, the two companies already had experience working together - State Street acts as the custodian of dollar security for GUSD stablecoin issued by Gemini.