State Street Joins J.P. Morgan Tokenized Debt Platform in $100M Deal

State Street Corporation has entered J.P. Morgan’s tokenized debt platform, becoming the first third-party custodian to join the initiative. The Boston-based firm purchased $100 million in tokenized commercial debt issued by Singapore’s Oversea-Chinese Banking Corporation (OCBC) through the platform, marking the platform’s first transaction [2]. This development highlights State Street’s commitment to expanding its blockchain capabilities, enabling institutional clients to hold tokenized securities within traditional regulatory frameworks [1].

J.P. Morgan’s Digital Debt Service, operated under its Kinexys blockchain unit, allows institutions to issue, trade, and settle tokenized versions of government and corporate debt. These digital securities are built on a permissioned blockchain and are designed to integrate seamlessly with existing market infrastructure. The platform aims to enhance capital efficiency and reduce settlement friction by leveraging blockchain technology [2]. State Street’s participation is viewed as a key step toward mainstream adoption of tokenized real-world assets (RWAs), a market that has grown significantly in recent months [3].

The transaction with OCBC, one of Southeast Asia’s longest-established banks, was facilitated by State Street’s asset management arm, State Street Investment Management. The move aligns with J.P. Morgan’s broader strategy to open its blockchain platform to third-party custodians, avoiding the creation of walled gardens that could limit broader market participation [2]. Donna Milrod, Chief Product Officer at State Street, emphasized that the integration supports the bank’s digital strategy, including cross-chain interoperability and on-chain wallet management [2].

J.P. Morgan launched its Digital Debt Service in April 2024 with the issuance of a $10 million digital bond by the City of Quincy, Massachusetts [4]. Since then, the platform has continued to evolve, with a focus on scalability and institutional adoption. The entry of a major custodian like State Street—which manages $5.1 trillion in assets and oversees $49 trillion in custody holdings—signals a growing recognition of tokenized debt as a legitimate and scalable asset class [3].

The move is part of a broader trend in the financial sector, where major institutions are increasingly exploring blockchain-based solutions to improve operational efficiency and market access. Tokenized debt offers the potential to streamline settlement processes, reduce counterparty risk, and enhance liquidity, especially in the global debt markets, which are valued in the tens of trillions [2]. As more custodians and market participants enter the space, the infrastructure for tokenized RWAs is expected to strengthen further [3].

Sources:

[1] title1.............................(https://www.coindesk.com/business/2025/08/21/state-street-expands-custody-to-tokenized-debt-on-jpmorgan-s-blockchain-platform)

[2] title2.............................(https://www.ledgerinsights.com/state-street-becomes-third-party-custodian-on-jp-morgan-digital-debt-service/)

[3] title3.............................(https://www.blockonomi.com/state-street-joins-j-p-morgans-blockchain-debt-service-with-100m-anchor-deal/)

[4] title4.............................(https://www.stocktitan.net/news/STT/state-street-becomes-first-third-party-custodian-to-launch-on-j-p-qlgzzp1fuc5i.html)