State Street Bank Focuses On Tokenizing Bonds And Money Market Funds

According to BlockBeats, on October 9, CoinDesk reported that State Street Bank's Chief Product Officer, Donna Milrod, revealed in an interview with Financial News that the bank is currently working on tokenizing bonds and money market funds. However, there are no plans to create stablecoins or tokenized deposits at this time. Milrod clarified, 'This does not mean we won't do it in the future; we just don't see the necessity right now.' Milrod mentioned that State Street Bank has two ongoing tokenization projects, focusing on bonds and money market funds, which are expected to be completed 'sometime next year.' The goal is to establish tokenized collateral, allowing traders to use it as margin without liquidating their assets to cash out. She emphasized, 'Operational efficiency alone is not enough. It needs to have commercial value, and the industry is figuring out where that value lies. Tokenized collateral could help avoid or mitigate the 'liability-driven' crisis of 2022, where pension funds could use money market fund tokens to meet margin calls instead of liquidating assets to raise cash.'