State Street Bank has chosen a new direction in its blockchain development strategy and has cut more than 100 developers working on applications based on the technology.
The Bank will now focus on digital assets, such as tokenized stocks and bonds, rather than work on implementing blockchain in the company’s work processes. A former State Street engineer, who preferred to remain anonymous, said that due to a change in strategy, the Bank has cut more than 100 blockchain developers.
Another person familiar with the situation said that “most of the blockchain development team has left the company,” and the number of employees laid off has exceeded 100.
“The Bank’s management has decided to gradually withdraw from the DLT development initiative,” an anonymous source from State Street said. “The Bank is now more focused on digital assets, stablecoins, storage, and the USC initiative.”
Ralph Achkar, managing Director of digital products at State Street in London, admitted that he “saw some cuts in the blockchain teams”, refusing to give the exact number of employees who were laid off. However, he noted that this optimization cannot be regarded as ” the Bank’s disinterest in DLT, because this is absolutely not the case.”
Previously, the blockchain development team at State Street worked with Hyperledger Fabric. The goal was to create a unified register of records that would improve the management of the State Street investment portfolio and other internal processes of the company. However, the Bank now describes its approach as “independent of a distributed registry” and plans to rely more on third-party service providers.