State Street Corporation (NYSE:STT) today announced that it will provide custody services to the Digital Securities Depository Corporation (DSDC). DSDC operates a novel cross-border securities settlement infrastructure with third-party regulated financial institutions to more efficiently create, issue and service digital depositary receipts (DDRs) in the US public market. The securities underlying the DDRs will include the non-US listed equity securities DSDC holds in custody with State Street.
State Street will provide safekeeping, transaction settlement, dividend collection, and FX payment services to DSDC with respect to its holdings of non-US listed equity securities. At launch, the DSDC network aims to deliver UK’s FTSE 350 constituent equities more efficiently into the hands of US investors. DSDC is a newly created US company that provides the structure for governance and support of the DSDC infrastructure network which is enabled by KALYP Technologies, a UK-based technology provider for distributed market infrastructure to the world’s securities industry.
“State Street is delighted to be working with DSDC to support its growth strategy to diversify into additional markets,” said Nadine Chakar, head of State Street Digital. “This mandate is another example of State Street Digital continuing to deliver on our broader global strategy of helping to build out the crypto and digital assets ecosystem.”
Launched in June of this year, State Street Digital was created to address the industry’s evolving shift to digital finance. The new division builds on State Street’s prior digital capabilities and focuses on innovations in crypto, central bank digital currency, blockchain and tokenization. State Street’s GlobalLink technology platform is also a component of State Street Digital.
“State Street is one of the largest and most respected custodians globally,” said Alistair Jones, CEO of DSDC. “Having them take care of the custody activities for the underlying securities of our digital cross-border securities brings considerable confidence to both investors and our other network members. This allows us to concentrate on our core competencies of building and expanding the network beyond the initial group of regulated institutions.”
“As institutional investors search for better returns and diversification, they continuously look for investment opportunities that deliver those benefits. The traditional American Depository Receipt structure that the market understands is a very convenient tool for diversification and remains in place. However, the servicing component, which has been around since the 1920s and has severe shortcomings, will receive a major upgrade from DSDC’s distributed market infrastructure,” commented Thorsten Peisl, CEO of KALYP Technologies.
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $42.6 trillion in assets under custody and/or administration and $3.9 trillion* in assets under management as of June 30, 2021, State Street operates globally in more than 100 geographic markets and employs approximately 39,000 worldwide. For more information, visit State Street's website at www.statestreet.com.
*Assets under management as of June 30, 2021 includes approximately $64 billion of assets with respect to SPDR® products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.
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About Digital Securities Depository Corporation
DSDC offers distributed market infrastructure delivering more efficient cross-border settlement of securities in digital format; initially Digital Depository Receipts (DDRs). Any regulated financial institution with an existing service required across the lifecycle of DDRs is invited to apply and join DSDC to offer their security services. Thereby DSDC offers existing firms to position their legacy services for the digital future. For more information, visit DSDC’s website at www.dsdc.net
About KALYP Technologies LTD
KALYP Technologies is a provider of enterprise software in the capital markets. Its distributed ledger-based software establishes smart market infrastructure for regulated financial institutions and enables more efficient processing of securities in digital format. The firm is independently financed and led by a group of securities industry veterans and distributed ledger technology experts with international presence between London and Boston. For more information visit www.kalyp.io
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