State Street jumps into crypto with new digital-asset platform

State Street Corp., long a stalwart of traditional finance, is making its biggest move yet into digital assets, unveiling a platform to support tokenized deposits, stablecoins, and crypto-backed funds for institutional clients.

Summary

• The Boston-based custodian will develop and manage money-market and exchange-traded funds alongside cash products such as tokenized deposits and stablecoins.
• Last month, State Street partnered with Michael Novogratz’s Galaxy Digital to launch a tokenized fund.
• The move follows a wave of big banks and asset managers introducing tokenized products.

The Boston-based custodian, according to Bloomberg, will develop and manage money-market and exchange-traded funds, collaborating with both its own asset-management division and external money managers.

Last month, State Street partnered with Michael Novogratz’s Galaxy Digital to launch a tokenized fund, signaling a broader ambition to move beyond back-office services, where the firm already provides administration and accounting for crypto ETFs and other digital holdings.

The move comes amid growing interest in digital assets from large financial institutions, spurred in part by a regulatory environment seen as increasingly favorable to cryptocurrencies. Rivals such as Bank of New York Mellon have rolled out tokenized deposit services, while asset managers including Fidelity, Franklin Resources, and JPMorgan have launched tokenized money-market funds. Even traditionally conservative firms such as T. Rowe Price are exploring crypto funds.

State Street, which oversees $51.7 trillion in assets for global clients, said the platform is designed to meet institutional demand for secure, regulated access to digital assets. The launch reflects a broader trend of Wall Street firms integrating cryptocurrency into mainstream finance, moving the sector beyond speculative trading toward regulated, institutional-grade products.