State Street Digital, the corporate custodian and investment services business with $3.5 trillion in assets under administration, is expanding its digital and cryptocurrency ambitious infrastructure offerings, after the creation of a dedicated digital assets section.
Lukka, a crypto data services business, will provide the new digital asset fund administration capabilities for private fund customers. To assist offer reconciliation and reporting services, State Street will use Lukka reference data and Lukka prime pricing data, as well as middle and back-office data management technologies.
The new offerings are intended to cater to a growing system of beliefs in incorporating digital assets into conventional portfolios.
Jen Tribush, State Street Digital’s alternatives head, stated, “If you think about the driver for a dedicated digital division within State Street it’s important to be able to be looking around the corner and the pace for which digital is going to play in a traditional portfolio for our clients,”. “This to us is a nice example of where we’re using the right tool set from a digital perspective and have it integrated in with the traditional portfolio and our fund administration offering.” says the company.
State Street is also a Lukka investor, having invested in the company’s $21 million Series C round in December 2020. To date, the firm has raised $99 million at a valuation of $200 million. S&P Global is one of its noteworthy shareholders, with whom it is collaborating on cryptocurrency financial market indexes.
“State Street is leading the charge to usher in the next generation of fund administration. Large, traditional funds are rapidly looking to add crypto to their offerings, which leads them to ask their existing, trusted service providers such as State Street for fund administration.” said Lukka CEO Robert Materazzi.