Northern Trust Assisting Hedge Funds in “Diversifying Their Portfolios with Cryptocurrency” – Trustnodes

Northern Trust Assisting Hedge Funds in “Diversifying Their Portfolios with Cryptocurrency”


One of the oldest bank in America with one trillion dollars worth of assets under management that caters to corporations, institutional investors, and high net worth individuals, is assisting hedge funds that are diversifying into crypto investments.

According to an interview with Forbes, the president of Northern Trust’s corporate and institutional services, Pete Cherecwich, says they are assisting hedge funds by checking records, providing valuation estimates and by providing a number of services created for cryptos specifically, including:

“New risk and control frameworks for anti-money-laundering, asset existence validation, crypto-trade reconciliations and the ability to handle new net asset value pricing arrangements.”

They are not providing custody services, nor do they plan to do so in the near future, but their expansion of services into cryptocurrencies suggests institutional interest in crypto investment is increasing.

“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,” said Cherecwich, before further adding: “We have to be able to figure out how to hold those tokens, value those tokens, do those things.”

They have further launched a number of projects to implement blockchain tech in backend offices, with Cherecwich stating they were preparing for a day when the government launches “a token of the U.S. dollar.”

“I do believe that governments will ultimately look at digitizing their currencies,” he says, with a number of such pilots underway in numerous jurisdictions but it currently appears unlikely any Central Bank will launch tokenized fiat any time soon.

Central Banks are however looking at utilizing blockchain tech as a back-up if say Swift like clearing systems go down or experience some problems.

The main attention for institutional investors however seems to be on diversifying their portfolios with cryptocurrencies either as a hedge or for potential gains with interest considerably increasing recently, leading to an ever growing infrastructure for crypto institutional investors.



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