{"id":45955,"date":"2025-02-19T16:32:56","date_gmt":"2025-02-19T16:32:56","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=45955"},"modified":"2025-02-19T16:32:56","modified_gmt":"2025-02-19T16:32:56","slug":"wall-street-giants-state-street-and-citi-enter-crypto-custody-race","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=45955","title":{"rendered":"Wall Street Giants State Street And Citi Enter Crypto Custody Race"},"content":{"rendered":"

Two of the world\u2019s largest custodian banks, State Street and Citi, announce their entry into the crypto custody market.\u00a0<\/span><\/p>\n

With $46.6 trillion and $25 trillion in assets under custody respectively, State Street and Citi are all set to reshape the crypto custody market.<\/span><\/p>\n

This was possible after the repeal of SAB 121, a 2022 US Securities and Exchange Commission (SEC) rule that effectively barred banks from providing crypto custody services.<\/span><\/p>\n

Introduced in 2022, SAB 121 imposed stringent requirements on banks providing crypto custody services, effectively locking them out of the market. <\/span><\/p>\n

Banks are building the infrastructure to incorporate #Crypto<\/a> into their backend payment systems
-Citi
-State street
Representatives confirms banks ARE interested in using these technologies #XDC<\/a> #XRP<\/a> #XLM<\/a> pic.twitter.com\/r7uNEDSflL<\/a><\/p>\n

\u2014 Cypress Demanincor (@CDemanincor) October 4, 2023<\/a><\/p>\n\n

\u00a0<\/p>\n

SEC Revoked SAB 121 Last Month<\/h2>\n

The SEC officially revoked its controversial crypto accounting guidance on 23 January 2025, which forced financial institutions to account for crypto assets as liabilities on their balance sheets.<\/p>\n

In an open\u00a0statement,<\/a>\u00a0the regulator referred to the passing of Staff Accounting Bulletin 122, which essentially overrides the earlier guidance under SAB 121. It\u2019s just about thrown a wedge into the already split argument for the previous directive.<\/p>\n

\u201cThis staff accounting bulletin (SAB) rescinds the interpretive guidance in Section FF of Topic 5 in the Staff Accounting Bulletin Series entitled Accounting for Obligations to Safeguard Crypto-Assets an Entity Holds for its Platform Users (\u2018Topic 5.FF\u2019),\u201d said SEC.<\/p>\n

The SEC added, however, that entities do not have to stop disclosing the obligations and risks of safeguarding crypto assets.<\/p>\n

Explore:\u00a0US Crypto Space Relieved as SEC Rolls Back Sab 121<\/a><\/strong><\/p>\n

State Street Entered Crypto Space In 2024<\/h2>\n

Last year, State Street announced its entry in the cryptocurrency space. The company\u00a0revealed<\/a>\u00a0a strategic partnership with a prominent player in the crypto industry, Switzerland\u2019s Taurus.<\/p>\n

By aligning with a key player in the crypto industry, State Street is positioning itself as a leader in the digital asset custody market.<\/p>\n

Commenting on the partnership, Donna Milrod, State Street\u2019s Chief Product Officer and Head of State Street Digital said, \u201cThe collaboration with Taurus underscores our ongoing commitment to further establishing ourselves as leaders in this growing asset class, <\/span>and this important announcement only enhances our ambition to deliver to our clients an amazing digital asset experience.\u201d<\/span><\/p>\n

Explore: State Street Confirms Partnership With Swiss Crypto Company Taurus<\/a><\/strong><\/p>\n

Citi\u2019s journey into the crypto space has been relatively quiet compared to some of its peers. However, the bank has been actively experimenting with blockchain-based initiatives over the years. Notably, Citi partnered with Singaporean startup BondbloX for tokenized bond custody and explored digital asset custody through a collaboration with Metaco\u2014a firm later acquired by Ripple.<\/span><\/p>\n

<\/span><\/p>\n

\n

Key Takeaways<\/h3>\n


\n <\/span><\/p>\n


\n <\/span>This regulatory shift coincides with increasing institutional demand for secure and reliable digital asset custody solutions.<\/span>
\n <\/span><\/p>\n


\n <\/span>The repeal of SAB 121 has been a game-changer for traditional banks seeking to enter the crypto market.\u00a0<\/span><\/p>\n


\n <\/span><\/p>\n


\n <\/span><\/p>\n

<\/span><\/p>\n<\/div>\n

<\/p>\n

The post Wall Street Giants State Street And Citi Enter Crypto Custody Race<\/a> appeared first on 99Bitcoins<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Two of the world\u2019s largest custodian banks, State Street and Citi, announce their entry into the crypto custody market.\u00a0 With $46.6 trillion and $25 trillion in assets under custody respectively, State Street and Citi are all set to reshape the crypto custody market. This was possible after the repeal of SAB 121, a 2022 US […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-45955","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/45955"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=45955"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/45955\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=45955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=45955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=45955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}