State Street Launches Digital Asset Platform for Tokenized Funds and Deposits

TLDR

• State Street launched an institutional digital asset platform to help businesses create tokenized money market funds, ETFs, tokenized deposits, and stablecoins
• The platform provides tokenization services, digital asset custody, and access to various digital assets for institutional clients
• State Street has $5.4 trillion in assets under management and recently partnered with Galaxy Asset Management and Ondo Finance for a tokenized fund on Solana
• BNY Mellon activated a tokenized deposit service earlier this month, while Franklin Templeton updated two money-market funds for blockchain settlement
• An October 2025 State Street report found nearly 60% of institutional investors planned to increase digital asset exposure

State Street announced Thursday the launch of its institutional digital asset platform. The platform aims to help businesses create tokenized versions of traditional financial products.

The banking giant will support the creation of tokenized money market funds and exchange-traded funds. It will also enable products like tokenized deposits and stablecoins through the new platform.

State Street manages $5.4 trillion in assets. The firm has been exploring the digital asset space for several years.

The platform will provide institutions with three main services. These include tokenization services, digital asset custody, and access to various digital assets.

Traditional Finance Moves to Blockchain

Joerg Ambrosius serves as State Street’s president of investment services. He stated the platform pairs blockchain connectivity with robust controls and global servicing expertise.

The platform targets institutional clients initially. All services remain subject to jurisdictional regulatory approvals.

Other major banks have launched similar initiatives. BNY Mellon activated a tokenized deposit service earlier this month for payments, collateral, and margin use.

Franklin Templeton updated two institutional money-market funds this week. The updates support blockchain-based settlement and ownership records.

State Street previously partnered with Galaxy Asset Management and Ondo Finance in December. That collaboration created a tokenized fund on Solana designed to provide 24/7 liquidity.

Institutional Demand Drives Adoption

State Street released a research report in October 2025. The report found nearly 60% of institutional investors planned to increase digital asset exposure.

Many investors expect portions of their portfolios to become tokenized over time. This demand has pushed major financial firms to develop blockchain-based products.

JPMorgan, Fidelity, and Franklin Templeton have launched tokenized money-market funds. BlackRock and other traditional firms have launched crypto-tied ETFs.

State Street positions tokenization as an upgrade to familiar investment structures. The bank plans to work with institutional money managers and its asset-management arm.

The platform represents a shift in how major banks approach digital assets. Instead of launching crypto-native products, firms are creating tokenized versions of existing financial instruments.

State Street already provides administration and accounting for crypto exchange-traded funds. The firm signaled plans in 2025 to expand into digital asset custody in 2026.

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