Boston-based asset management and banking giant State Street (STT) is working on tokenizing bonds and money market funds, but has no immediate plans to issue a stablecoin or tokenized deposits.

- The bank’s chief product officer Donna Milrod said there are no current plans to issue a stablecoin, but it is possible in the future.

- The company is focusing on two tokenization projects: bonds and a money market fund.

- The goal is to create tokenized collateral that traders can use as margin without having to liquidate assets.

- Traditional financial institutions are increasingly engaging in the tokenization of real assets, which promises to improve efficiency and reduce administrative costs.

- State Street is also expanding its presence in the digital asset industry, selecting Swiss company Taurus as a tokenization partner.