State Street Explores Blockchain Technology and Stablecoin Development

State Street is making waves in the world of settlement technology as it reportedly delves into blockchain technology. The global asset manager is said to be considering the creation of its own stablecoin and deposit token, signaling a potential leap into the crypto space. With an eye on innovation, State Street may leverage its investment in a UK-based payment startup, Fnality, to explore new settlement options and collaborate on digital-cash consortium efforts.

While State Street’s foray into blockchain settlement technology is significant, it is not the first financial institution to explore this space. JPMorgan and Goldman Sachs have already made strides with blockchain projects and stablecoins. In addition, the concept of deposit tokens, which represent bank deposits in digital form, has been pioneered by various entities like JPMorgan and PayPal to enhance the digital economy.

State Street’s interest in blockchain technology aligns with its establishment of a dedicated digital finance division in 2021. Despite experiencing layoffs within the division, it has been reintegrated into the main business this year. Furthermore, the global asset manager has been actively involved in securities transactions, serving as the fund administrator for Bitcoin exchange-traded funds (ETFs) among other initiatives. As it explores new opportunities in the blockchain space, State Street is poised to make a mark in settlement technology and digital finance.