Northern Trust helps Hedge Fund with Cryptocurrency Investments

Northern Trust helps Hedge Fund with Cryptocurrency Investments

Pete Chercewich, the President of Northern Trust’s corporate and institutional services division has said that the company has started operating in the blockchain industry. Since the beginning of the year, Northern Trust has been assuring that a hedge fund’s financial reports are consistent with those seen at its cryptocurrency custodian.

Northern Trust is also helping hedge funds by evaluating their crypto investments and communicating the gathered information to the fund’s clientele. While traditionally, Northern Trust has dealt in the legacy market-related investments industry, it hasn’t experienced much problems in its transition to the infant stage industry of blockchain and cryptocurrency.

Some of the notable crypto related services offered by Northern Trust includes NAV(Net Asset Value) pricing arrangements, anti-money laundering compliance and crypto trade reconciliations.

The company has been recently working with three hedge funds to expand their crypto portfolio, however, they did not reveal which hedge funds were these. Chercewich also told Bloomberg that the company has begun to develop a method to reliably secure crypto assets. Their plan is to provide custody support at industry low fees. He said,

The fees right now the custodians are charging are pretty high, not the same fees that we get –- ultimately, I believe unsustainable, because it needs to be an efficient model.

Chercewich also expressed his excitement for tokens for ‘anything’ today. He stated,

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, do those things.

He also said that he sees a future where the government will issue fiat currency as a digital asset based on blockchain technology. He 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 [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.

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Pallavi Janiani

Pallavi Janiani

Content Writer
I am studying Business and psychology at the university of Minnesota. Apart from learning about how the economy and the human mind works, I spend my time dancing with my bollywood fusion team, reading, writing, traveling, usually with a cup of coffee in my hand.