State Street Corporation, a major global custody bank and financial services provider, has announced the launch of its new Digital Asset Platform. The endeavor is an attempt by the custody bank to grow in the asset class, which is increasingly becoming more popular.
The new digital asset platform is being positioned as a secure, scalable infrastructure designed specifically for tokenized assets, which would make the firm a key bridge between tradfi and digital finance.
It will focus on the development and support of various tokenized products, including ETFs, MMFs, and regulated stablecoins, according to what the Boston-based company shared in an email to Bloomberg.
State Street launches digital asset platform
The bank will collaborate with money managers and institutional clients, tapping into a deep network that currently runs into trillions in funds. That collaboration will also extend to its own asset-management arm, which has been launching separate products.
Joerg Ambrosius, president of investment services, claims the platform’s launch is a step towards achieving State Street’s goals, which is to take things further where administration and accounting services are concerned.
The firm already manages over $50 trillion for many of the world’s largest asset managers and institutions, while providing administration and accounting services for clients holding cryptocurrencies and crypto ETFs.
The launch of its own digital asset platform means that it will no longer provide just back-office support, but also features like wallet management, custodial services, cash capability, and strong compliance controls.
The main goal is to allow its institutional clients to access these products seamlessly across jurisdictions, not only on public permissioned channels but also on private blockchain networks.
All of this was made possible by the POTUS’s support of the cryptocurrency industry as well as a more friendly outlook from regulators, which encouraged financial firms to expand in the asset class that the global finance world had relegated to speculative and risky.
Tokenized fund launch with Galaxy Digital
Last month, State Street Investment Management, an arm of the State Street Corporation, and Galaxy Asset Management, an affiliate of Michael Novogratz’s Galaxy Digital, unveiled plans to launch the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized private liquidity fund that is expected to serve as a bridge between traditional cash management and 24/7 liquidity.
Aside from providing institutional investors with seamless, always-on liquidity for holding and managing cash-like assets in the digital space, the fund is designed to address the budding demand from crypto enthusiasts for instant redemptions as an alternative to traditional funds, which are limited to operating only during business hours.
The redemptions will reportedly utilize PYUSD, which facilitates near-instant, on-chain processing. The endeavor is powered by Galaxy’s Digital Infrastructure, which will manage token issuance and provide secure blockchain infrastructure with State Street Bank and Trust Company acting as custodian for the fund’s treasury holdings.
The fund is expected to make its debut in early 2026, with Solana chosen for the initial rollout because of its low cost and high throughput. It will expand to Stellar and Ethereum using Chainlink for cross-chain interoperability.
Ondo Finance is expected to provide a seed investment of $200 million to jump-start liquidity while encouraging an integration with Ondo’s ecosystem.
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Source: https://www.cryptopolitan.com/state-street-new-digital-platform/
