State Street is stepping deeper into tokenization, betting that the next wave of institutional finance will run on blockchain rails rather than back office plumbing.
The custody bank said Thursday it is rolling out a suite of tokenized products as it pushes to grow in an asset class that is moving from pilot projects to production builds.
In a statement, State Street announced the launch of its Digital Asset Platform, which it described as secure, scalable infrastructure for tokenized assets that positions the firm as a bridge between traditional and digital finance for clients.
The asset manager said the build will support core products for institutional customers, including tokenized money market funds, ETFs, tokenized assets and cash products such as tokenized deposits and stablecoins.
Infrastructure Targets Institutional Grade Tokenization
Under the hood, the platform includes wallet management, custody and cash capabilities, and it is designed to support tokenized product development across jurisdictions on both private and public permissioned blockchain networks, with security, operational controls and on-chain compliance integrated into existing systems.
“This launch marks a significant step in State Street’s digital asset strategy,” said Joerg Ambrosius, president of Investment Services at State Street.
“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.”
State Street Sees Tokenization Rising Sharply By 2030
The move lands as large asset managers, custodians and exchanges race to turn traditional instruments into programmable ones, aiming to speed settlement, reduce operational friction and unlock liquidity in markets that still run on paperwork and batch processes.
Tokenized cash and tokenized fund shares are becoming the building blocks institutions want in place before they scale more complex on-chain strategies.
State Street has been framing that shift for months. In an October study, the firm projected that by 2030, between 10% and 24% of institutional investments could be executed through tokenized instruments, and it singled out private equity and private fixed income as early candidates because of illiquidity and high operational costs.
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