According to BlockBeats, on October 9, State Street Bank’s Chief Product Officer Donna Milrod said that the bank is working on the tokenization of bonds and money market funds, but currently has no plans to create stablecoins or tokenized deposits.

Milrod said State Street has two tokenization projects it aims to complete part of next year. The goal is to create tokenized collateral that traders can use as margin without having to liquidate assets for cash.

Milrod said collateral tokens could help avoid or mitigate a “liability-driven” crisis in 2022, when pension funds could use money market fund tokens to make margin calls rather than liquidate assets to raise cash.