State Street Joins JPMorgan Blockchain Platform for Tokenized Debt Custody

State Street has become the first third-party custodian on JPMorgan’s tokenized debt platform, marking a significant milestone in the integration of blockchain technology into institutional custody services. This collaboration allows State Street to hold blockchain-based debt securities on behalf of investors, expanding its traditional custodial role into the digital asset space. The move underscores the growing adoption of tokenized real-world assets (RWAs) and reflects a broader trend of institutional players entering the digital debt market [1].

The partnership was formalized through an inaugural transaction involving a $100 million issuance of tokenized commercial paper by Singapore-based OCBC Bank, one of Southeast Asia’s oldest financial institutions. State Street’s asset management arm, State Street Investment Management, purchased the commercial paper, signaling its active participation in the digital debt lifecycle [2]. The transaction took place on JPMorgan’s Digital Debt Service platform, which is built on its Kinexys permissioned blockchain, launched in April 2024 [2].

State Street, one of the world’s largest custodians with over $49 trillion in assets under custody and $5.1 trillion under management, has positioned itself as a key player in the tokenized RWA market. The firm’s Chief Product Officer, Donna Milrod, described the partnership as a “meaningful step forward in our digital strategy,” emphasizing the need for an integrated blockchain-based solution tailored to institutional clients [2]. By offering custody services for digital debt instruments, State Street is addressing the evolving needs of investors seeking greater transparency, efficiency, and liquidity in their portfolios.

This development also highlights JPMorgan’s broader strategy to open its blockchain infrastructure to third-party participants. The firm previously issued a $10 million digital bond for the City of Quincy in 2024, demonstrating the platform’s potential to streamline the issuance and settlement of tokenized debt. The inclusion of State Street as a custodian addresses concerns about the fragmentation of permissioned blockchain systems, offering a more scalable and interoperable solution for institutional investors [2].

The tokenized RWA market has experienced rapid growth, expanding by approximately 65% since the beginning of 2025, with a market capitalization now exceeding $26.4 billion, excluding stablecoins [2]. JPMorgan’s Kinexys platform has played a pivotal role in this expansion, with Chainlink recently partnering to develop payment infrastructure for tokenized RWA transactions. In June 2025, Kinexys, Chainlink, and Ondo Finance completed a cross-chain transfer of Ondo’s OUSG tokenized Short-Term US Treasurys Fund, showcasing the potential for interoperability between different blockchain networks [2].

As more custodians explore the integration of blockchain technology into their services, the role of platforms like JPMorgan’s Digital Debt Service is likely to grow. These platforms are helping bridge the gap between traditional finance and the digital economy by enabling faster settlements, reducing operational costs, and improving transparency in asset management. The collaboration between State Street and JPMorgan not only strengthens the credibility of tokenized debt but also sets a precedent for future institutional participation in the digital asset space.

[1] https://www.coindesk.com/business/2025/08/21/state-street-expands-custody-to-tokenized-debt-on-jpmorgan-s-blockchain-platform

[2] https://www.ledgerinsights.com/state-street-becomes-third-party-custodian-on-jp-morgan-digital-debt-service/

[3] https://cryptobriefing.com/state-street-jpmorgan-custodian-digital-debt/