Northern Trust, a financial service giant ranking 486th on the Fortune 500 list of the largest U.S. companies has reportedly decided to enter the crypto industry by opening some of its services to cryptocurrency.
The 129-year-old Chicago based firm, Northern Trust has started to open up some of its services to cryptocurrency hedge funds along with exploring the techniques of integrating blockchain technology into its private equity division, as reported by Forbes. Traditionally, the company caters to institutional investors, corporations, and high net worth individuals. With the intention of gaining exposure to the increasing market of cryptocurrency, the company is adding cryptocurrency investments to their portfolios while working with three “mainstream hedge funds”. According to their website, Northern Trust has approximately $10.7 trillion in assets under custody and administration. Verifying that the third-party custodians of the firm are holding the crypto assets that the funds report on their balance sheet, Northern Trust is providing crypto-curious hedge funds and institutions with administrative services like assisting them in anti-money laundering (AML) compliance.
Open to cryptocurrency
In addition to this move by Northern Trust, an accounting firm PwC has agreed to audit the Tezos Foundation which looks at the assets raised during the cryptocurrency’s then-record initial coin offering (ICO). This shows that the established financial service firms are finally starting to realize that the market like that of cryptocurrency industry cannot be neglected any longer. Northern Trust’s president of corporate and institutional services Pete Cherecwich said,
“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 is still 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.”