Yahoo Finance State Street (STT) Inks Deal for Enhanced Digital Solutions
State Street Corp.’s STT asset management business, State Street Global Advisors, has announced a collaboration with Galaxy Asset Management, an affiliate of Galaxy Digital Holdings Inc., to introduce investors to the next generation of digital asset-based strategies. This will enhance investors’ exposure to digital asset space companies, extending beyond just cryptocurrencies and bitcoin.
This partnership between prominent global asset managers aims to offer investors the latest innovation in digital asset investing. The combination of the proficiencies of two leading brands and first-movers will provide investors accessibility to the $2.4 trillion digital asset ecosystem via manager-directed strategies.
Anna Paglia, chief business officer at State Street Global Advisors, said, “We believe that the digital assets landscape is so much more than the single crypto components and that crypto native companies are best equipped to understand that ecosystem and its correlation with financial markets.”
“We are pleased to be working with Galaxy to educate investors about the role digital assets can play in a diversified portfolio, and provide the opportunity to participate in the next level of growth and innovation for the digital asset ecosystem,” she added.
Since the inception of spot bitcoin ETFs, institutional and retail interest has increased in digital assets. Investors are also seeking exposure to this surging asset class via investment options beyond pure spot bitcoin. This could be the driver of growth in the digital asset ecosystem.
Steve Kurz, global head of Asset Management at Galaxy Digital, stated, “Since Galaxy was founded, active management across the full ecosystem of digital assets and crypto companies has been a core competency.”
This move is in alignment with STT’s initiatives to expand its offerings through organic and inorganic measures. The company has been engaged in opportunistic buyouts to boost its offerings. This February, it acquired CF Global Trading to further expand its outsourced trading capabilities. The company has taken full ownership of its two joint ventures as part of its consolidation of India-based operations. Further, in 2021, it acquired Mercatus to offer a fully integrated platform to institutional investors for growing private market segments.
Over the past six months, shares of the company have lost 7.1% against the industry’s rise of 11.7%.
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STT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Financial Services Firms Taking Similar Steps
Earlier this month, AssetMark Financial Holdings Inc.’s AMK wholly-owned subsidiary AssetMark Inc. entered into a strategic coalition with Morningstar Wealth. The transaction, approved by the board of directors of both companies, is expected to be closed in the second half of 2024, subject to regulatory approvals.
AssetMark will acquire roughly $12 billion in assets from Morningstar Wealth Turnkey Asset Management Platform ("TAMP") as part of the alliance. AssetMark’s platform, which offers top-tier service, advisor technology, business consulting and a diligently selected group of investment strategists, will be accessible to financial advisors and clients on Morningstar Wealth’s TAMP.
Similarly, Regions Financial Corporation’s RF subsidiary, Regions Bank, has launched Regions CashFlowIQ in collaboration with BILL Holdings. CashFlowIQ is a digital solution intended to make payments easier and simplify cash-management procedures for its commercial clients.
This move is in sync with RF’s emphasis on providing cash flow management solutions, which remain a major priority for clients seeking a simplified and efficient financial management tool. The company continues to invest in innovative technology resources that serve its clients with digital account management.
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