Financial behemoth State Street observes declining institutional investor demand for cryptocurrency.

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State Street, an investment management company, claims that despite price declines, institutional clients continue to invest in crypto assets. According to a State Street executive, “there is a belief that the asset class is here to stay.”

 

State Street on Institutional Demand for Crypto

Despite market sell-offs, State Street, a top investment management company, sees unwavering institutional demand for cryptocurrencies, the Sydney Morning Herald reported on Monday.

State Street Digital’s product lead for the Asia-Pacific region, Irfan Ahmad, stated that the banking giant’s institutional clients are still interested in cryptocurrencies and the technology that powers them. He was reported to have said:

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 executive emphasized, “The takeaway from that is, I think, there is a belief that the asset class is here to stay.

State Street (NYSE: STT) has over 40,000 employees worldwide and operates in over 100 different geographic markets. As of June 30, the massive provider of financial services had $3.5 trillion in assets under management and $38.2 trillion in assets under custody and/or administration.

According to its website, State Street Digital, the company’s digital division, offers solutions for a variety of digital assets, including cryptocurrencies, stablecoins, digital cash, and central bank digital currencies (CBDCs).

Ahmad pointed out that a number of significant investment companies, including Goldman Sachs, have started to offer cryptocurrency products and are likely to make more inroads into the space. Goldman Sachs made its first loan backed by bitcoin available in April.

In August, Blackrock, the biggest asset manager in the world, introduced a spot bitcoin private trust. The firm stated, “We are still seeing substantial interest from some institutional clients despite the sharp decline in the digital asset market.

The State Street executive went on to say that institutional customers have asked about introducing cryptocurrency products, explaining:

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.

In July last year, State Street announced the expansion of its cryptocurrency service, citing soaring demand from traditional funds.

Crypto exchanges are also seeing rising demand from institutional investors. The CEO of Bitstamp said in August that his trading platform is seeing “massive crypto interest” from institutional clients. In June, Binance launched a new platform for VIP and institutional crypto investors to increase support for institutional clients.