Blockchain
State Street Eyes Blockchain Leap With Stablecoin, Deposit Token: Report — TradingView News
State Street has shown serious interest in blockchain settlement technology, a report says. The global asset manager has been slow to move into the cryptocurrency space, but it could soon make a big leap forward.
An anonymous Bloomberg source said that State Street is considering creating its own stablecoin and deposit token. It could also leverage its investment in British payment startup Fnality to create new settlement options and join the “digital money consortium efforts.”
Enterprise Stablecoins and Deposit Tokens Have a Solid Precedent
State Street isn’t breaking new ground in blockchain regulation. JPMorgan launched its Onyx blockchain and stablecoin, JPM Coin, in 2020. Goldman Sachs began trading digitized bonds on the chain the following year. JPMorgan introduced a tokenization platform called the Tokenized Collateral Network in 2023 and added a programmable payments feature months later.
Deposit tokens, which are digital representations of bank deposits, were first introduced as part of Project Guardian, the massive asset tokenization project launched by the Monetary Authority of Singapore in 2022. JPMorgan was a founding member of that project and developed the technology for its own use.
PayPal introduced the PayPal USD (PYUSD) stablecoin in August. BlackRock began tokenizing assets with a digital liquidity fund in March. Coin’s Telegraph
State Street Bullish on Cryptocurrency ETFs
State Street created a dedicated digital finance division in 2021. That division subsequently saw layoffs, but was revived and integrated into the core business this year. State Street participated in a securities settlement trial with the Depository Trust and Clearing Corporation (DTCC) and other financial institutions in 2022.
State Street serves as a fund administrator for several Bitcoin (BTC) exchange-traded funds (ETFs). Galaxy Digital is one of the ETF providers it services, and the two firms have agreed to jointly pursue the creation of new digital asset ETFs.
It has filed with the U.S. Securities and Exchange Commission to add the SPDR Galaxy Emerging Technology Enablers ETF, the SPDR Galaxy Digital Asset Ecosystem ETF, and the Hedged Digital Asset Ecosystem ETF to its broad range of funds.