The institutionalization of crypto: State Street partners with Pure Digital
Standing on the shoulder of giants such as State Street, Pure Digital is strengthening its position at the negotiating table with several other Tier 1 investment banks in order to provide a deep OTC market for digital assets and cryptocurrencies with physical delivery and bank custody.
Big news for the world of digital assets. State Street’s Currenex will be providing trading infrastructure to the Pure Digital platform, which is expected to go live this year.
The second-oldest bank in the U.S. with $3.1 trillion in assets under management has signed an LOI with Puremarkets to explore the digital currency trading space via the Pure Digital platform.
David Newns, Global Head of Execution Services for GlobalLink, State Street Global Markets, said: “Currenex is thrilled to leverage our experience and expertise in the FX and digital asset trading marketplace to provide Pure Digital with robust technology and infrastructure for this exciting digital currency trading initiative.”
Currenex will deploy its high-performance technology for anonymous and disclosed trade execution on Pure Digital’s trading platform, which offers a wholesale interbank market for Tier 1 investment banks to trade bitcoin and other digital assets.
Standing on the shoulder of giants such as State Street, Pure Digital is strengthening its position at the negotiating table with several other Tier 1 investment banks in order to provide a deep OTC market for digital assets and cryptocurrencies with physical delivery and bank custody.
Torbjørn Bull Jenssen, CEO of Arcane Crypto, which holds a 37.5% stake in Pure Digital (Puremarkets Limited): “It is an important step for Pure Digital that one of the leading banks in the world is now publicly declaring their support for Pure Digital. We believe this will help Pure Digital accelerate its development.
“That Currenex will provide the technology platform is also important. Currenex is a company and an infrastructure that most of the leading banks in the world already are familiar with and trust. This could further speed up the process of attracting other Tier 1 banks”, he added.
Pure Digital will gather Institutional participants to trade on the platform utilizing bilateral credit enabling efficient capital utilization and control for all trading participants in order to establish a market for price discovery and exchange of risk.
The platform allows participants to leverage their preferred digital asset custody solutions and manage risk through a smart custody routing mechanism.
The platform will adopt FX-industry standard APIs and best execution to minimize technology cost for participants who wish to use their existing Prime Bank / Custodial relationships and infrastructure.
Campbell Adams, Founder of Pure Digital, said: “Pure Digital is pleased to explore the digital asset space with State Street as we share the same vision for the future of the digital currency market.”
Lauren Kiley, CEO of Pure Digital, commented: “We are excited to partner with Currenex, an industry leader in FX, on this initiative; as we work to transpose FX infrastructure to the crypto space via a bank-led consortium.”
State Street has signed the letter of intent with Pure Digital as it evaluates the use of the platform for its own trading of cryptocurrencies.
Other investment banks have announced their moves into the digital asset class, including Goldman Sachs, BNY Mellon, and Morgan Stanley, which are addressing institutional demand by setting up crypto trading desks.
