State Street Corp. Explores Blockchain Payment Solutions
YEREVAN (CoinChapter.com) — State Street Corp., a financial services company based in Boston, is exploring blockchain-based payment settlements. According to a source, the firm is looking into creating a stablecoin. This type of cryptocurrency is pegged to assets like the US dollar and operates on a blockchain. Additionally, State Street Corp. is considering developing a deposit token that would represent customer deposits on a blockchain.
State Street Explores Blockchain Future․ Source: Mary Becker
The timeline for these initiatives remains unclear. The source requested anonymity as the details have not been publicly disclosed. A State Street spokesperson declined to comment.
State Street is also assessing its involvement in digital-cash consortiums. It is exploring settlement options through its investment in Fnality, a blockchain payment startup expanding into the US. A company spokesperson declined to comment on these plans.
Financial Giants Embrace Blockchain for Efficient Global Payments
The crypto industry promotes blockchain for faster and cheaper global payments. Consequently, traditional financial companies are stepping into this space. For example, PayPal introduced its own stablecoin last year. Similarly, Visa and Mastercard have enabled stablecoin-based settlements. Additionally, JPMorgan Chase & Co., the largest US bank, is also exploring deposit tokens.
Introducing a deposit token by State Street would require approval from US banking regulators.
State Street Boosts Digital Asset Integration with New Team and Partnerships
State Street is increasing its focus on digital assets. Earlier this year, it integrated its digital-asset team members into its overall business to enhance synergy between traditional finance and digital assets.
State Street, the third-largest manager of exchange-traded funds (ETFs), offers services like fund administration and accounting for crypto ETFs. The company expanded its digital-asset efforts through a partnership with Galaxy Asset Management to develop digital asset ETFs.
Survey Reveals Readiness for Digital Asset Trading Among Institutions
In the coming months, State Street plans to concentrate on tokenizing assets like funds. This strategy aligns with its recent digital-asset survey findings. According to the survey, involving 300 investment institutions, nearly half are ready to trade digital assets on and off distributed ledgers and blockchains, provided they have the appropriate infrastructure.
State Street Corp.’s exploration into blockchain payment solutions includes stablecoins, deposit tokens, and tokenized assets.
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