State Street becomes first custodian on JPMorgan tokenized debt platform

State Street, one of the world’s top three asset managers, can now custody blockchain-based debt securities for institutional clients.

State Street, an asset manager and custodian bank serving institutional clients, has joined financial services company JPMorgan’s tokenized debt platform as its first third-party custodian, allowing it to hold blockchain-based debt securities on behalf of investors.

JP Morgan’s Digital Debt Service platform allows institutional clients to trade and settle tokenized debt instruments, which are securities issued on a blockchain that represent government or corporate bonds.

The asset manager purchased $100 million in tokenized commercial debt from the Oversea-Chinese Banking Corporation (OCBC), one of the oldest banks in Southeast Asia, in the platform’s inaugural transaction, according to Thursday’s announcement.