"Bloomberg" quoted people familiar with the matter as saying that the American financial giant "State Street" is exploring how to use blockchain technology for payment settlement, and is even considering creating its own "stable currency" and "deposit tokens" ”.
A "deposit token" is a convertible digital token that represents a deposit held at a commercial bank. Basically, they are digital versions of the deposits in a customer's account. Since transactions utilizing these tokens are processed on the blockchain, settlement is instantaneous, helping to reduce transaction costs.
It is reported that State Street Bank is also currently evaluating the possibility of joining the Digital Cash Alliance, and is exploring suitable settlement options through Fnality, a blockchain payment startup it has invested in. However, before the official launch of deposit tokens, State Street Rich Bank must first obtain approval from U.S. financial regulators.
In response to the above news, a spokesman for State Street declined to comment.
State Street, the second-oldest bank in the United States with assets under management (AUM) of $4.42 trillion, has been exploring the cryptocurrency space for years, and in 2019 it partnered with cryptocurrency exchange Gemini on a digital asset pilot test project.
Earlier this year, State Street integrated its team members focused on digital assets into its overall business to achieve closer integration between traditional finance and digital assets. It is also currently providing fund management and accounting services for cryptocurrency ETFs. .
"To use blockchain for payment and settlement, State Street Bank is considering creating its own "stable currency and deposit token". This article was first published on "Blocker".
