State Street Corp., a titan of traditional finance, is making its biggest move into digital assets yet. The Boston-based custodian unveiled a new platform to support tokenized deposits, stablecoins, and crypto-backed funds for its institutional clientele.
The firm will develop and manage money-market and exchange-traded funds, collaborating with both its own asset-management division and external money managers. This follows a recent partnership with Michael Novogratz’s Galaxy Digital to launch a tokenized fund, signaling a broader ambition to move beyond mere back-office services. State Street 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.
