Bloomberg reported that State Street Global, the world’s largest issuer of ETF SPY, is expressing interest in stablecoins and tokenized deposits, saying it intends to cooperate with crypto payment startups to explore new settlement solutions.
State Street moves into tokenization
According to Bloomberg citing people familiar with the matter, the banking giant, with more than $4 trillion in assets under management, is delving into the creation of “stablecoins” and “deposit tokens” to improve the efficiency and cost of fund transfers:
State Street is considering creating its own stablecoin and deposit token, and is interested in building a new blockchain settlement solution through an investment in crypto payments company Fnality.
It is reported that Fnality received US$95 million in financing led by Goldman Sachs in November last year, with participation from many financial giants such as WisdomTree, Nomura and State Street Bank.
State Street has always been one of the banks that has been low-key involved in the crypto field. It established a dedicated digital finance department in 2021 and provides custody services for a number of Bitcoin ETFs.
Last month, the company also announced a partnership with crypto investment firm Galaxy Digital to facilitate the creation of a new digital asset ETF.
(SPY issuer State Street joins forces with Galaxy to enter crypto ETF)
Traditional finance actively deploys RWA
It is nothing new for banks and asset management giants to enter the field of encryption technology, even for stablecoins and deposit tokens, including:
JPMorgan Chase: Launching the Onyx blockchain and its own stablecoin JPM Coin in 2020, and launching the Tokenized Collateral Network (TCN) in 2023
Goldman Sachs: Launching tokenization platform GS DAP in 2023 and continuing to issue and trade U.S. funds and European bonds on the platform
BlackRock: Launching USD Institutional Digital Liquidity Fund BUIDL in 2023, which has tokenized more than $1.8 billion in U.S. Treasury bonds so far
Fidelity: Issues fund tokens on zkSync through crypto bank Sygnum, and also cooperates with Chainlink to upload financial data to the chain
However, it is not just the financial industry. Authorities from various countries are exploring or working on creating tokenized assets, including task forces established by the Taiwan Financial Supervisory Commission and the Hong Kong Monetary Authority, and the Monetary Authority of Singapore (MAS) launched in 2022. Asset tokenization plan "Project Guardian".
(Deutsche Bank joins Singapore’s RWA project Project Guardian to research fund tokenization)
This article State Street moves into tokenization! Exploring the creation of your own stablecoin and deposit tokens first appeared on Chain News ABMedia.
