The financial services provider State Street Corp. has announced the launch of its new division. One that will allow the company to expand into cryptocurrencies, tokenization, central bank digital currencies (CBDCs), and blockchain technology.
“The world of finance is changing,” the company announced from its official Twitter account. “We are ready. Our new division, StateStreetDigital will focus on addressing the industry’s transformation to decentralized finance and a digital economy.”
Nadine Chakar, an industry veteran of 30 years, will head up the division. Chakar previously held the position of Head of Global Markets. As she takes up her new role, Tony Bisegna will replace her as Head of Global Markets in September.
A press release revealed that GlobalLink, the company’s proprietary technology platform, is an integral element of the division. The platform will be enhanced to accommodate and support multiple assets. In other words, cryptocurrencies, alongside other asset classes.
The release quoted Chakar to say, “As digital currencies and tokenization not only gain momentum, but transform financial infrastructure and operating models, we can help our clients bridge the gap between the industry of today and the one of tomorrow.”
Other institutions edge towards digital
CBDCs are one of the digital facets State Street Digital aims to expand into. And they are not the only ones. CBDCs remain a hot topic for debate across the crypto space. A recent paper from the Bank for International Settlements (BIS) revealed almost 50 central banks have launched designs or prototypes for their own digital currencies. The authors of the paper proposed a hybrid or intermediated CBDC showed promise over those based on current cryptocurrency systems.
Meanwhile, the U.K. is still undecided about their own CBDC. Reports revealed that, while the country is still weighing up the advantages and disadvantages with stakeholders. However, it has conducted research into the matter. In the meantime, the Governor of the Bank of England, Andrew Bailey, praised CBDCs. He referred to them as “one of the most fundamental innovations in the history of central banking.”