State Street launched a digital asset Platform, describing it as a scalable infrastructure designed to support a range of tokenized products for institutional clients.

The bank plans to use the platform to develop tokenized money-market funds, ETFs, other tokenized assets and cash instruments including tokenized deposits and stablecoins.

The group positions the platform as a bridge between traditional finance and digital asset venues, and as a connection point for clients that want to access tokenized instruments through a single provider.

It comes as large custody and asset management firms explore tokenization to change how investors hold and transfer fund shares and cash-like instruments.

Wallets, Custody and Cash Capabilities

The Digital Asset Platform bundles wallet management, custodial services and cash functionality in a single environment that supports tokenized product development across multiple jurisdictions.

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"By pairing blockchain connectivity with robust controls and global servicing expertise, we’re enabling institutions to confidently embrace tokenization as part of their core strategy with an organization like us that they can trust,” Jörg Ambrosius, the President, Investment Services, State Street Corporation, said.

State Street says the infrastructure can operate across both private and public permissioned blockchain networks, reflecting institutional focus on controlled access and regulatory oversight.

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Institutional clients gain a single interface intended to link digital asset activity with traditional servicing, which aims to reduce the need to build or manage separate technology stacks for each blockchain project.​

Focus on ‘Practical, Not Experimental’ Infrastructure

It is worth noting that the demand for tokenized has been on the rise beyond the well-known Bitcoin and Stablecoins. Recent data indicates that the combined market capitalization of tokenized stocks has climbed to a record of about $1.2 billion, with the fastest growth occurring in September and December last year.

At the same time, regulators have highlighted risks associated with this emerging market. The European Securities and Markets Authority warned that tokenized stocks can mislead investors because, while they may mirror the price of underlying shares, they typically do not provide shareholder rights.

As of 30 September 2025, State Street reported about $51.7 trillion in assets under custody and/or administration and $5.4 trillion in assets under management, and it operates in more than 100 geographic markets with around 52,000 employees worldwide.