November 27, 2022

State Street and Gemini Launch Crypto Asset Tax Reporting Pilot Project

State Street and Gemini Launch Crypto Asset Tax Reporting Pilot Project
American financial State Street Corporation, together with the Gemini Trust Company, launched a pilot project for reporting on BTC and ETH stored in the custody service Gemini Custody.

State Street said the project will allowcustomers combine reporting of digital assets located in Gemini with traditional assets served by State Street. Initially, information will be provided only for two cryptocurrencies (BTC and ETH), given their liquidity in the framework of Gemini Custody. However, companies said that in the future, the service will publish data on other digital assets, including stock tokens.

“We intend to develop business in accordance withthe needs of our customers. The digital asset market is still quite young, but its potential can dramatically change the scope of finance. Now we see a small but growing demand for such solutions. In this case, it is necessary to solve many technical and legal issues, as well as deal with regulation. That's why we started an open testing of the project with the Gemini exchange, which is considered an authoritative player in the cryptocurrency industry, ”said Ralph Achkar, Managing Director of Digital Products at State Street.

In turn, the CEO of Gemini TrustCompany Tyler Winklevoss (Tyler Winklevoss) noted that cooperation with State Street is an important event in the history of the company. Now traditional investors have the opportunity to place part of their capital in crypto assets through reliable and regulated financial institutions.

Tyler Winklevoss said State Streetmanages assets worth several trillions of dollars, so both companies approach the choice of partners with particular seriousness and will never compromise when it comes to security.

In October, State Street executives announced that for five years digital assets will be part of any investment portfolio.