State Street, the second oldest operating bank in the United States, is moving into the cryptocurrency industry by agreeing to introduce its technology for a new cryptocurrency trading platform.

Currenex, a State Street-owned currency technology provider, has entered into an agreement with crypto company Puremarkets to provide the trading infrastructure and technology for the new Pure Digital cryptocurrency trading platform. Pure Digital, when announcing the news Thursday, announced that it will also partner with State Street to continue exploring the cryptocurrency trading industry.

According to the announcement, Pure Digital will become a fully automated marketplace for digital assets and cryptocurrencies with physical delivery and bank supervision. The new platform, slated to be launched in mid-2021, is said to allow institutional investors to trade using binary lending and multiple custody solutions. “The bidders will be able to freely use their preferred digital real estate storage solutions and manage risks through a smart storage network mechanism,” the statement said.

In late March, State Street announced that the bank had been studying the role of Bitcoin (BTC) in multi-asset portfolios for the past nine years. “There is still no case for Bitcoin to be used as a hedge for stocks, although they may move in this direction. The key point for investors is to combine their preference for reducing risk and increasing potential with the expected diversification and profitability characteristics of Bitcoin to determine the optimum position,” the bank wrote.

State Street has been actively exploring the cryptocurrency industry in recent years. At the end of 2019, the bank announced the launch of a digital assets pilot project in cooperation with the Gemini Trust Company. The pilot relies on research and development on digital assets to integrate Gemini Custody with State Street Back Office Reports.

Earlier this year, Bank of New York Mellon announced plans to store, transfer and issue Bitcoin and other cryptocurrencies as an asset manager on behalf of its clients.

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