Under a mutual agreement, Crypto custody firm Copper & State Street terminated their partnership citing regulatory heat in the US.
State Street Corporation is a US-based financial services and bank holding company headquartered at One Lincoln Street in Boston with operations worldwide. This company was founded in 1972. Despite a better financial position, the corporation decided to step back from the digital assets sector.
On 16 Feb 2023, Global custody bank State Street released an email statement and confirmed that the corporation decided to end its partnership with cryptocurrency custody firm Copper.
“State Street and Copper have mutually decided to end their licensing agreement and both companies will continue to build on their digital strategies within their respective product development approaches,” State Street’s official email read.
The banking giant confirmed that the corporation will always remain engaged to focus on all types of its custody services and also noted that the crypto sector needs more regulatory clarity.
The whole decision has been taken under the mutual agreement but so far no statement has come from Copper regarding this decision.
US Banks & regulatory heat
In the last 10 days of the period, around half a dozen banks reported their very bad financial position and are looking for a financial backup to save the Bank depositors.
Many reports noted that all such struggling US bank’s services were significantly inclined toward the crypto companies, so the downfall & bankruptcy of the crypto companies resulted in a very big loss for banks also.
The latest decision by Copper & State Street will surely push the negative wave in the US banks. The whole situation acted as a catalyst to push the price of cryptocurrencies upwards because crypto proponents are claiming that Banks are failing & now decentralised currencies are the only solution.
Read also: FDIC doesn’t want Signature Bank to divest its crypto activities: Report
State Street Bank terminates partnership with crypto firm Copper