State Street has unveiled a new institutional digital asset platform designed to help financial institutions enter the rapidly growing world of crypto tokenization. The platform enables clients to create tokenized versions of traditional financial products, including money market funds, exchange-traded funds (ETFs), tokenized deposits, and stablecoins.
The multinational banking giant said the initiative is aimed at bridging traditional finance with blockchain technology, allowing institutions to move assets on-chain while maintaining regulatory controls and operational oversight. The rollout marks another major step in State Street’s expanding digital asset strategy as global banks accelerate their push into tokenization.
State Street’s Crypto Platform Focuses on Tokenized Funds and Digital Asset Custody
According to State Street, the new platform combines blockchain connectivity with institutional-grade safeguards, offering tokenization services, digital asset custody, and access to a broad range of crypto assets. This infrastructure is designed to help institutions confidently integrate tokenized products into their core investment and treasury operations.
Joerg Ambrosius, president of investment services at State Street, said the platform enables clients to embrace tokenization while maintaining the governance and controls expected from a global custodian bank. Like many bank-led tokenization initiatives, the platform is initially targeted at institutional clients and will roll out subject to regulatory approvals across different jurisdictions.
Tokenization has become a major focus for traditional finance firms, with proponents arguing that blockchain technology can improve liquidity, settlement speed, and access to capital markets.
Tokenization Momentum Builds as Banks and Asset Managers Expand Blockchain Offerings
State Street oversees approximately $5.4 trillion in assets under management and has steadily increased its involvement in digital assets over the past several years. Momentum accelerated in 2025 as the firm deepened its blockchain partnerships and product development.
In December, State Street partnered with Galaxy Asset Management and Ondo Finance to launch a tokenized fund on the Solana blockchain. The initiative aims to bring cash sweep balances on-chain, providing institutions with 24/7 liquidity access.
State Street joins a growing list of major financial institutions exploring tokenized finance. Firms such as Fidelity, Franklin Templeton, and JPMorgan have already launched tokenized money market funds, while asset managers including BlackRock have introduced crypto-linked ETFs.
Looking ahead, crypto banking group Sygnum has predicted that tokenization could reach mainstream adoption by 2026, driven by clearer regulatory frameworks in the United States. As regulations evolve, platforms like State Street’s may play a central role in connecting traditional capital markets with blockchain-based financial infrastructure.
