State Street Bets on Tokenisation to Modernise Wall Street’s Core Infrastructure
- State Street is developing tokenised money-market funds, ETFs, and deposits to transition traditional market infrastructure onto blockchain technology.
- The bank focuses on upgrading existing fund structures for institutional clients rather than creating crypto-native products.
- This move mirrors a broader industry shift where firms like BNY Mellon and Franklin Templeton are digitising real-world assets to improve liquidity and settlement speed.
State Street said it is building tokenised versions of mainstream cash and investment products, including money-market funds, exchange-traded funds and cash instruments such as tokenised deposits and stablecoins.
According to a press release, the firm plans to work with institutional asset managers and clients alongside its asset-management arm, which last month partnered with Galaxy Digital on a tokenised private liquidity fund.
We are moving beyond experimentation and into practical, scalable solutions that meet the highest standards of security and compliance. 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.
Joerg Ambrosius, president of Investment Services at State Street.
Overall, State Street is positioning tokenisation as an upgrade to familiar fund structures rather than a move into crypto-native products.
Read more: Analysts Say Stress-Testing Gold vs. Bitcoin Reveals a Clear Winner
Tokenisation: Crypto’s VC Darling
Tokenisation is basically turning tangible or intangible assets into digital assets by converting the data (like ownership rights, value, etc) into a token through smart contracts, specially on platforms like Ethereum. This provides benefits such as fractional ownership, streamline processes of ownership and transfers for investors, more liquidity, speed, and transparency.
Hence why many institutions are shifting toward digitising real-world assets like cash itself. Earlier this month, BNY Mellon rolled out a tokenised deposit service for payments, collateral and margin use, creating blockchain representations of bank deposits that remain liabilities of the issuing bank rather than stablecoins.
Similarly, Franklin Templeton also recently updated two institutional money-market funds to support blockchain-based settlement and ownership records without changing how the funds are managed or regulated.
Read more: Institutions Set to Supercharge Crypto’s Next Wave in 2026
The post State Street Bets on Tokenisation to Modernise Wall Street’s Core Infrastructure appeared first on Crypto News Australia.
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