State Street Corporation, a longtime traditional finance stalwart, is making its biggest move yet into digital assets, announcing a platform that supports tokenized deposits, stablecoins and crypto-backed funds for institutional investors.
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- The Boston-based custodian develops and manages money market and exchange-traded funds alongside cash products such as tokenized deposits and stablecoins.
- Last month, State Street launched a tokenization fund in partnership with Michael Novogratz’s Galaxy Digital.
- The move follows a wave of large banks and asset managers introducing tokenized products.
The Boston-based custodian will work with both its own wealth management division and outside asset managers to develop and manage money market funds and exchange-traded funds, according to Bloomberg.
Last month, State Street partnered with Michael Novogratz’s Galaxy Digital to launch a tokenized fund, signaling broader ambitions beyond the back-office services the company already offers to manage and account for crypto ETFs and other digital holdings.
The move comes amid growing interest in digital assets from major financial institutions, driven in part by a regulatory environment that is seen as increasingly favorable for cryptocurrencies. Rivals such as Bank of New York Mellon are rolling out tokenized deposit services, and asset managers such as Fidelity, Franklin Resources and JPMorgan are launching tokenized money market funds. Even traditionally conservative companies like T. Rowe Price are exploring cryptocurrency funds.
State Street, which oversees $51.7 trillion in assets for customers around the world, said the platform is designed to meet institutions’ demands for secure and regulated access to digital assets. The launch reflects a broader trend of Wall Street firms integrating cryptocurrencies into mainstream finance, moving the field beyond speculative trading and toward regulated, institutional-grade products.
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