US financial services giant State Street is exploring tokenized bonds and money market funds.
State Street Chief Product Officer Donna Milrod said the company is currently studying both projects and is working to establish tokenized collateral that can be used as variation or initial margin for trades. Currently, firms must sell their money market fund holdings to generate margin for trades. By digitizing these funds and using crypto tokens as collateral, the need for redemptions can be eliminated entirely.
She also revealed that the company currently has no plans to launch stablecoins or tokenized deposits, but has not ruled out the possibility.
State Street has expanded its involvement in the crypto space and established partnerships to strengthen its digital asset services. For example, it has partnered with Swiss crypto company Taurus to provide services such as tokenization of tangible assets.
Recently, State Street appointed former Bank of New York Mellon executive Vanessa Fernandes to lead its digital asset solutions division. (Financial News)