According to a report by CoinDesk, in anticipation of a more friendly regulatory environment in the United States, global custodian bank State Street has chosen to cooperate with Taurus, a cryptocurrency custody and tokenization company, to provide digital asset services.
State Street said its initial goal is to launch tokenized versions of traditional assets first and announce its first customer soon. The bank also plans to provide digital asset custody services once the U.S. regulatory environment improves.
Banks in the United States have been facing a major obstacle in the form of Staff Accounting Bulletin No. 121 (SAB 121) proposed by the U.S. Securities and Exchange Commission (SEC), which imposes restrictions on companies seeking to hold customersâ crypto assets.
Donna Milrod, chief product officer and head of digital asset solutions at State Street, said the company has been "strongly vocal" about the need to revise SAB 121 rules, which could force banks seeking to hold cryptocurrencies to maintain onerous capital to compensate. risk. Milrod said in an interview:
âWe started with tokenization, but thatâs not where we end. Once regulations improve in the U.S., we will also offer digital custody services. We know how to be a custodian and we wonât put those assets in our On the balance sheet, we manage them as off-balance sheet assets, they are not our assets.â
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