Financial Services giant, Northern Trust has recently opened their gates to cryptocurrency hedge funds while also working on adopting blockchain technology into their private equity division.
According to Forbes, the 129-year-old firm headquartered in Chicago, Illinois, that mostly caters to Big-time investors and high-net-worth individuals is now offering their services to raise funds by assessing their crypto ventures, while additionally passing on the accumulated data to the fund’s clientele.
Most recently, Northern Trust has been working with the three “mainstream hedge funds” to broaden their portfolios into cryptocurrency investments.
Having an estimation of $10.7 trillion assets under custody and administrations, Northern Trust at present has no authority over crypto resources specifically. However, the firm is giving crypto-inquisitive hedge funds and institutions with managerial administrations, for example, helping them allocate qualities to their ventures, aiding Anti-Money Laundering [AML] consistency, and confirming that the organizations’ third party custodians are holding the cryptocurrency resources on their accounting sheets.
Pete Cherecwich, the President of Northern Trust’s corporate and institutional services explains to a Forbes Interviewer why Northern Trust as pledging so many resources to the Technology and the reason for his interest in cryptocurrencies. He said:
“You can take anything today. You can take movie rights, you can take all sorts of entities, and you can create a token for those… We have to be able to figure out how to hold those tokens, value those tokens, and do those things.’
Sources indicate that it was also expressed that although the company is exploring blockchain technology, they are ‘cautious’ as there are chances of the government issuing their own versions of cryptocurrencies on Blockchain platforms in future.
Cherecwich further stated:
“I do believe that governments will ultimately look at digitizing their currencies, and having them trade kind of like a digital token — a token of the U.S. dollar — but the U.S. dollar [would still be] in a vault somewhere, or backed by the government. How are they going to do that? I don’t know. But I do believe they are going to get there”
In spite of having a traditional perspective on the financial industry, Northern Trust has accepted Blockchain technology and its applications. However, recently the Northern Trust Executive requested his team to be very “cautious” when it comes to regulating the blockchain technology as they feel the existence of a “potential danger” of placing new rules on the industry since the “database has never been regulated.”
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