State Street Advances Tokenization Strategy with Blockchain-Based Cash and Fund Products
State Street is accelerating its embrace of tokenization, migrating segments of traditional finance onto blockchain infrastructure. The custody bank is developing tokenized versions of money market funds, ETFs, and cash instruments—including deposit tokens and stablecoin products—for institutional clients operating in regulated environments.
The initiative expands State Street's growing digital assets footprint. The institution already provides fund administration services for cryptocurrency ETFs and plans to launch digital asset custody by 2026. Notably, its asset management arm recently partnered with Galaxy Digital on a private tokenized fund.
BNY Mellon's recent tokenized deposit service rollout underscores a broader trend among custodian banks. These blockchain-based cash solutions streamline payments, collateral management, and margin requirements—demonstrating how legacy financial infrastructure is being rebuilt on distributed ledger technology.
