State Street Stablecoins and Deposit Tokens Are Now Being Promoted

Key Points:

• State Street stablecoins and deposit tokens are being considered for creation by the asset manager.
• The Boston-based institution is considering creating its own stablecoin pegged to the US dollar and exploring blockchain-based solutions for customer deposit representation.
• These initiatives reflect a broader trend in traditional finance towards integrating digital assets

According to Bloomberg, State Street Corporation, a prominent American financial institution managing $4 trillion in assets based in Boston, is actively exploring the creation of its own stablecoin—a type of cryptocurrency pegged to a stable asset like the US dollar.

Read more: $100B Illegal Crypto Surge Hits Stablecoins, Exchanges!

State Street Stablecoins and Deposit Tokens Under Development Consideration

State Street is also reportedly evaluating participation in digital-cash consortium efforts and exploring settlement solutions through investments in Fnality, a blockchain payment startup expanding its presence in the US. State Street stablecoin initiatives, though not publicly confirmed, underscore State Street’s strategic interest in blockchain-based payment settlements.

State Street Drives Digital Asset Integration in Financial Services

The State Street stablecoin reveal comes amidst a broader trend where traditional financial giants are increasingly exploring blockchain for enhanced financial services.

The financial industry’s embrace of blockchain technology is driven by its potential to facilitate faster and more cost-effective global payments. Major players like PayPal, Visa, and Mastercard have already ventured into stablecoin-based settlements, reflecting a broader acceptance within traditional finance.

Earlier this year, State Street integrated its digital-assets team into its core operations, aiming for closer integration between traditional financial services and digital assets. As a leading ETF manager, State Street already provides services like fund administration for crypto ETFs and recently partnered with Galaxy Asset Management to develop digital asset-focused ETFs.