State Street Explores Tokenized Bonds and Money Market Funds
The firm’s decision to tokenize funds is driven by increasing industry recognition of its practical applications in traditional finance.
US-based financial services giant State Street is reportedly exploring tokenized bonds and money market funds.
Donna Milrod, chief product officer at State Street, told Financial News that the firm is currently working on both projects.
Milrod shared that the firm is working on building tokenized collateral, which could serve as either variation or initial margin in trading. At present, firms must sell money market fund holdings to generate cash for trade margin. By digitizing these funds and using crypto tokens as collateral, the need for redemption could be entirely eliminated.
She also revealed that it has no immediate plans to launch a stablecoin or tokenize deposits. But it hasn’t ruled this out for the future. She added that the decision to tokenize funds is influenced by the growing industry recognition of its practical uses in traditional finance.
The firm didn’t return Cryptonews’ request for comment by press time.
State Street Names New Digital Assets Chief
The financial firm focuses on investment management, servicing and administration. Its division, State Street Global Advisors (SSGA), manages assets and is known for launching one of the first exchange-traded funds (ETFs). The company also provides custody, fund accounting and administration services, handling securities for institutional investors globally.
State Street has expanded its involvement in the crypto sector, forming partnerships to enhance its digital asset services. For instance, it teamed up with Swiss crypto firm Taurus to offer services like tokenizing tangible assets.
Recently, State Street appointed Vanessa Fernandes , formerly an exec at Bank of New York Mellon, to lead its Digital Assets Solutions unit.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Synthetic Bitcoins Released on TON Network
In the latest update, the developers Telegram added ads in bots
Russian Crypto Services Conquer Market Thanks to Sanctions
A whale sold 90,000 SOL in the past 15 hours in exchange for 14.87 million USDC