Financial services and banking giant State Street Corp. is exploring ways to participate in blockchain payment settlements, but a timetable for implementation has not yet been determined, Bloomberg reported, citing people familiar with the matter.
The Boston-based asset management firm is exploring the creation of its own stablecoin. The company is also considering creating its own deposit token that would represent customer deposits on the blockchain, people familiar with the matter said. State Streetâs launch of a deposit token reportedly requires approval from U.S. banking regulators.
State Street is also evaluating joining the Digital Cash Alliance and is studying settlement options through its investment in U.S. blockchain payments startup Fnality, people familiar with the matter said.
State Street is already stepping up its digital asset efforts. The company earlier this year integrated digital asset-focused team members into its overall business as it looks to strengthen the integration between traditional finance and digital assets. State Street, the third-largest exchange-traded fund (ETF) manager, has begun providing fund management and accounting services for cryptocurrency ETFs. Most recently, the company further expanded its digital asset efforts by partnering with digital asset manager Galaxy to develop a digital asset ETF.
According to reports, State Street has stated that it will focus on the tokenization of funds and other assets in the coming months. In a recent digital asset survey of 300 investment institutions, the company found that nearly half said they were ready to trade digital assets on decentralized ledgers and blockchains, as long as they had the appropriate infrastructure in place.
Source: Bloomberg
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