State Street Joins JPMorgan Tokenized Debt Platform Boosting Blockchain Adoption

State Street has become the first third-party custodian to join JPMorgan’s tokenized debt platform, a development that marks a key advancement in the institutional adoption of blockchain-based securities. The platform, known as Digital Debt Service, allows institutional clients to trade and settle tokenized debt instruments, which represent real-world assets such as government or corporate bonds on a blockchain. In its inaugural transaction, State Street acted as custodian for a $100 million issuance of tokenized commercial paper from OCBC Bank, a major Southeast Asian institution [2].

The move represents a significant milestone in the evolution of tokenized real-world assets (RWAs) and reflects growing institutional confidence in blockchain technology for asset management and securities settlement. State Street, which manages over $49 trillion in assets under custody, is widely recognized as one of the largest custodians globally. Its integration into JPMorgan’s platform underscores the potential for cross-institutional collaboration in the digital finance space [4].

JPMorgan launched its Digital Debt Service in April 2024 with the issuance of a $10 million digital bond by the City of Quincy, Massachusetts. The platform, built on JPMorgan’s Kinexys permissioned blockchain, has since expanded to include third-party custodians like State Street. This expansion aligns with JPMorgan’s broader strategy to open its blockchain platform to external participants, addressing concerns about data silos in permissioned blockchain environments [1]. By doing so, the bank is promoting greater interoperability and access to digital debt instruments.

State Street’s involvement extends beyond custody to include the development of integrated front-, middle-, and back-office capabilities, including on-chain digital wallet management and cross-chain interoperability [3]. This approach supports a more seamless and transparent custody experience for clients holding tokenized assets. Donna Milrod, State Street’s Chief Product Officer, emphasized the importance of building a fully integrated digital infrastructure to meet the evolving needs of institutional investors [4].

The tokenized RWA sector has seen significant growth, with a 65% increase in market capitalization since the beginning of 2025, reaching over $26.4 billion, excluding stablecoins [2]. This growth is supported by partnerships such as the one between JPMorgan’s Kinexys and Oracle Chainlink, which aim to improve payment infrastructure for tokenized asset settlements [4].

The collaboration between State Street and JPMorgan highlights the increasing convergence between traditional finance and blockchain technology. As more institutions explore the benefits of tokenization—such as improved liquidity, transparency, and efficiency—the market is likely to see broader adoption and innovation. State Street’s entry into the tokenized debt custody space positions it as a key player in the digital assets ecosystem while reinforcing JPMorgan’s vision of a more interconnected financial infrastructure [1].

Source:

[1] State Street Expands Custody to Tokenized Debt on JPMorgan’s Blockchain Platform – CoinDesk (https://www.coindesk.com/business/2025/08/21/state-street-expands-custody-to-tokenized-debt-on-jpmorgan-s-blockchain-platform)

[2] State Street becomes first custodian on JPMorgan Tokenized Debt Platform – Cointelegraph (https://cointelegraph.com/news/state-street-joins-jpmorgan-toknized-debt-platform-custodian)

[3] State Street Becomes First Third-Party Custodian to Launch on J.P. Morgan's Digital Debt Service – Business Wire (https://www.businesswire.com/news/home/20250821857834/en/State-Street-Becomes-First-Third-Party-Custodian-to-Launch-on-J.P.-Morgans-Digital-Debt-Service-Bringing-Blockchain-Based-Debt-Securities-Custody-to-Institutional-Clients)

[4] State Street Becomes Third Party Custodian on JP Morgan Digital Debt Service – Ledger Insights (https://www.ledgerinsights.com/state-street-becomes-third-party-custodian-on-jp-morgan-digital-debt-service/)

[7] Company Announcement - Markets data - Financial Times – Financial Times (https://markets.ft.com/data/announce/detail?dockey=600-202508211145BIZWIRE_USPRX____20250821_BW857834-1)