Custody bank State Street has begun developing tokenised fund products.
On Jan. 15, The Block reported that as global banks seek to use blockchain in financial infrastructure, State Street is aiming to upgrade existing investment structures beyond the cryptocurrency market.
State Street is working with its asset management unit on tokenisation projects for institutional investors and clients. Its recent development of a tokenised private liquidity fund with Galaxy Digital is part of that strategy. With demand for digital assets rising in traditional financial markets, State Street plans to expand digital asset custody by 2026.
BNY Mellon has also recently introduced tokenised deposit services for payments, collateral and margin trading. The approach converts bank deposits, rather than stablecoins, onto a blockchain-based system.
A 2025 State Street report said about 60 percent of institutional investors plan to increase exposure to digital assets, and that a significant share of portfolios is expected to be tokenised.
Chi-gyu Hwang
delight@d-today.co.kr