Bank of America, FTX, & Coinbase Join Paxos as Strategic Investors, State Street Offering Crypto Services to Private-Fund Clients
“No signs of a slowdown” in the growth in popularity of crypto assets, says Nadine Chakar, head of State Street Digital. Meanwhile, PayPal’s crypto liquidity provider gets a $2.4 billion valuation as high-profile names join its $300 mln funding round.
New York-based Paxos, which focuses on the back-end infrastructure and enables PayPal’s cryptocurrency services, announced new strategic investors for its $300 million Series D funding raised three months back.
To date, Paxos has raised over $540 million in funding with a valuation of $2.4 billion.
“We're at the beginning of a technological transformation where new market infrastructure is needed to replatform the global financial system,” said Charles Cascarilla, CEO and co-founder of Paxos.
The second-biggest bank in the US, Bank of America, is slowly getting deeper into the cryptocurrency industry, which joined the Paxos Settlement Service earlier this year. Competitors are also following suit with Goldman Sachs, JPMorgan, and Morgan Stanley, all offering bitcoin trading services to their wealthy clients.
In other news, on Thursday, State Street Corp. also announced that it is all set to offer crypto reporting, reconciliation, and processing services to its private-fund clients in partnership with software provider Lukka.
“Large, traditional funds are rapidly looking to add crypto to their offerings, which leads them to ask their existing, trusted service providers such as State Street for fund administration,” said Robert Materazzi, CEO of Lukka.
The second oldest bank in America with $42.6 trillion in assets under custody and $3.9 trillion in assets under management as of June 30, 2021, also announced in April that it would be launching a crypto trading platform for institutions in partnership with Pure Digital.
“The growth in popularity of digital assets is showing no signs of a slowdown, and State Street Digital is committed to continuing to build out the necessary infrastructure to further develop our digital assets servicing models to help meet our clients’ growing demands,” said Nadine Chakar, head of State Street Digital.