The interest in cryptocurrency is not going anywhere, according to Jay Biancamano, State Street managing director for digital product development. Institutions have been traditionally cold around these new investment instruments. But even in the bear market, there is still interest in what might come of these. According to some, the next year could be the year of institutional crypto.
State Street: Cryptocurrency Still Interesting
Jay Biancamano, State Street managing director for digital product development and innovation, declared that cryptocurrency is still interesting for institutions. State Street is no slouch of a bank. They are one of the biggest asset custodians in the whole world, with more than 30 trillion assets under their care. Custody is the name of the game for them.
However, they are not considering getting into the cryptocurrency custody business at the moment. But Jay Biancamano state that institutional interest in crypto is still very high even with the bear market in full force. Bitcoin has lost more than 80% of its former value. To some, this is the result of a bubble market popping.
But institutions are clearly interested in crypto, as some of them are launching crypto related products next year. Jay stated:
“There is no sense of urgency on the part of our clients to move into these assets right now. When they do, we want to meet them there. There is a very high level of interest but no need to move because currently none of our clients are looking for us to house these assets in custody,”
so the interest in cryptocurrency is still there, but it is still dormant.
Institutional Cryptocurrency Products
However, Jay also said that they are trying to keep up with new technologies. They are listening to what their clients are saying and following their demands. Despite this, they have no intentions of launching any cryptocurrency product services in the near future. They are still testing the waters for real demand. Jay declared:
“We do talk to our clients who are interested in doing this and we are looking at this very closely. But we are not putting a sign that we are opening for business. That said, we are a blockchain-friendly firm; we are very involved in the vertical.”
The demand on these customers is not just only of cryptocurrency. They have also expressed great interest in blockchain derived tech, like asset tokenization. To conclude he stated:
“It’s not just about the current cryptocurrency; it’s also about tokenization and digitalization of traditional assets too.”