According to Odaily, American financial services giant State Street Bank is exploring the tokenization of bonds and money market funds. Donna Milrod, the Chief Product Officer at State Street, stated that the company is currently investigating these projects and working on establishing tokenized collateral that can be used as variation or initial margin for transactions. Presently, companies must sell their money market fund holdings to generate trading margin. By digitizing these funds and using crypto tokens as collateral, the need for redemption can be entirely eliminated.

Milrod also mentioned that the company has no immediate plans to launch stablecoins or tokenized deposits, though it has not ruled out the possibility. State Street has expanded its involvement in the crypto sector and formed partnerships to enhance its digital asset services. For instance, it has collaborated with Swiss crypto company Taurus to offer services such as the tokenization of tangible assets. Recently, State Street appointed former BNY Mellon executive Vanessa Fernandes to lead its digital asset solutions division.