State Street Deploys Infrastructure Platform for Tokenized Assets
Financial services and banking firm State Street has introduced an infrastructure platform for tokenized assets.
The company says the platform, announced Thursday (Jan. 15), is designed to help State Street serve as a bridge between digital and traditional finance.
“We are moving beyond experimentation and into practical, scalable solutions that meet the highest standards of security and compliance,” Joerg Ambrosius, president of investment Services at State Street, said in a news release.
“By pairing blockchain connectivity with robust controls and global servicing expertise, we’re enabling institutions to confidently embrace tokenization as part of their core strategy with an organization like us that they can trust.”
The release said the platform is key to promoting State Street’s digital ambitions in developing client products such as tokenized money market funds, exchange traded funds, and cash products including tokenized deposits and stablecoins.”
The company added that the platform includes wallet management, custodial and cash capabilities, aimed at boosting tokenized product development across private and public permissioned blockchain networks.
“Underpinned by enhanced security and operational and on-chain compliance controls, integrated with existing systems, the platform supports secure, scalable access for institutional clients offering a seamless interface between digital and traditional services,” State Street said.
Tokenized deposits are becoming part of the mainstream financial world.
For example, Citi has integrated Citi Token Services with 24/7 USD Clearing, which lets institutional clients move tokenized deposits across jurisdictions in near-real time without needing to leave established account, compliance and settlement frameworks.
HSBC has rolled out a Tokenized Deposit Service that lets corporates convert deposits into tokens that move instantly between wallets while remaining within existing treasury workflows.
And J.P. Morgan’s Kinexys platform has gone a step further, testing a dollar-denominated deposit token operating on blockchain rails, upheld by the bank’s balance sheet and governed by standard know-your-customer and risk controls.
“In each case, tokenized deposits are positioned as core infrastructure rather than speculative instruments. They support liquidity management, collateral mobility, programmable treasury operations and large-value settlement while mirroring existing account structures and legal protections,” PYMNTS CEO Karen Webster wrote recently.
“For CFOs and treasurers, the permissioned nature of these systems is not a constraint. It is the feature. It maps cleanly onto how they already think about counterparties, risk tiers and control.”
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