February 22, 2024

State Street: 38% of our customers will increase their investments in Bitcoin in 2020

Most clients of the State Street banking holding company are interested in Bitcoin, but their demand for custodialsolutions are still low. It is reported by CoinDesk.

According to a State Street poll, 94%The oldest Boston bank's customers keep Bitcoin or trade futures based on it, and 38% plan to increase investments in digital currencies next year. 45% of respondents intend to leave the volumes of their portfolios unchanged.

62% of respondents are sure that tokenization will increasethe effectiveness of risk management, 55% are convinced that it will improve security. 36% believe that tokenization democratizes investments for retail investors, and will also increase the liquidity of the financial market.

Most State Street customers are confidentprospects for distributed ledger technology (DLT). 62% of respondents expressed the opinion that blockchain will be integrated into trading processes in 2020, and 65% believe that DLT will improve financial products.

54% believe that in 2020, US regulators will finally approve Bitcoin-based ETFs.

The survey was conducted among a sample of 101 US asset managers.

Bitcoin, not DLT

Representatives of the American bank said that on Wall Street, the “blockchain mantra, not Bitcoin,” is becoming less and less popular. At the same time, State Street intends to follow current trends.

Recently, the bank fired more than 100 developerssolutions based on distributed registry technology. However, the responsibilities of the DLT team do not overlap with the functions of the unit under the direction of Jay Biankamano, director of digital products and innovation at State Street. His team is focused on digital assets and tokenization, and works closely with clients and third-party companies.

“These were parallel paths. We can continue to engage in digital assets and remain in this business without the need for several DLT developers- said Biancamano. -We are less focused on infrastructure and more focused on digital assets."

He added that large investors already, in fact, have the opportunity to invest in bitcoin-based ETFs:

“VanEck is privately owned. WisdomTree has announced the opportunity to invest on the Swiss stock exchange. I would like regulators to become more supportive of Bitcoin ETFs. However, I believe that there is already an opportunity to invest in BTC both directly and through funds ”

A year ago, Jay Biankamano said that State Street is ready to provide custodial services for cryptocurrency assets in case of demand from customers.

In October, Biancamano expressed the view that a typical investment portfolio would include tokenized real estate, intellectual property, and art.