State Street Joins JPMorgan’s Blockchain for Tokenized Debt Custody
State Street has joined JPMorgan's blockchain-based tokenized asset platform, Digital Debt Service, becoming its first third-party custodian. Key details include:
- State Street manages $49 trillion in assets.
- The inaugural transaction involved a $100 million tokenized commercial paper issuance by Oversea-Chinese Banking Corporation (OCBC).
- State Street Investment Management acquired the debt, with J.P. Morgan Securities as placement agent.
- The move aligns with traditional finance's increasing adoption of asset tokenization for operational efficiency and cost reduction.
- Market projections for tokenized assets vary from $2 trillion by 2030 to nearly $19 trillion by 2033.
- State Street offers custody of tokenized debt securities while maintaining its traditional servicing model.
- Transactions support delivery-versus-payment settlements and automate processes through smart contracts.
- State Street is also exploring initiatives to tokenize a bond and a money market fund.
Donna Milrod, State Street's chief product officer, emphasized the importance of this launch in advancing their digital strategy and enhancing interoperability across blockchain networks.