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State Street Launches Institutional Platform for Tokenized Funds and Digital Cash

The bank targets institutions with a single-provider setup that connects permissioned blockchains to traditional servicing under existing controls.

Overview

  • The new Digital Asset Platform is designed to support tokenized money-market funds and ETFs, plus cash instruments such as tokenized deposits and stablecoins.
  • State Street bundles wallet management, custodial services, and cash functionality into one environment with a single interface for multi-jurisdictional use.
  • The infrastructure operates across private and public permissioned blockchain networks to meet institutional requirements for controlled access and oversight.
  • Recent pilots include a tokenized fund launched with Galaxy Digital, reflecting a shift from back-office crypto support to direct product development with clients.
  • The rollout comes as peers introduce tokenized deposits and money-market funds, while regulators flag investor-rights risks and tokenized stocks total roughly $1.2 billion in market value; State Street oversees about $51.7 trillion in assets under custody or administration.