PANews reported on October 9 that according to CoinDesk, State Street Bank Chief Product Officer Donna Milrod said in an interview with (Financial News) that the bank is working on tokenizing bonds and money market funds, but currently has no plans to create stablecoins or tokenized deposits. However, Milrod said: "It doesn't mean we won't do it in the future, but we don't think it's necessary to do it now."
Milrod said the firm has two ongoing tokenization projects focused on tokenizing bonds and money market funds, which will take the firm “part of next year” to complete. The goal is to create tokenized collateral that traders can use as margin without having to liquidate their holdings for cash. “Operational efficiency alone is not enough. It needs to have business value, and the industry is figuring out where the business value is,” Milrod said, adding that 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 instead of liquidating assets to raise cash.
The move follows a July report from Bloomberg that said State Street was exploring the creation of stablecoins and developing tokenized deposits.
