State Street Plans to Provide Digital Assets Services

State Street, a global custody bank with $44.3 trillion in assets under management, has chosen Taurus to provide digital asset services.

The bank aims to initially offer tokenized versions of traditional assets, with a client expected to be announced shortly.

While custody specialists like State Street are natural fits for digital assets, banks in the US have faced challenges due to the Securities and Exchange Commission’s (SEC) proposed Staff Accounting Bulletin 121 (SAB 121).

SAB 121 imposes restrictions on companies that want to hold their customers’ crypto assets, forcing banks to maintain significant capital to mitigate risk. State Street has been vocal about the need to modify SAB 121 to facilitate digital custody services.