State Street is considering the introduction of a stablecoin and deposit token to improve blockchain-based payments and settlements. According to Bloomberg, a source familiar with the matter reveals that the Boston-based financial giant is exploring blockchain technology to enhance its payment systems.
Potential Stablecoin and Deposit Token
State Street is evaluating participation in digital-cash consortiums, in line with its investment in Fnality. This blockchain payment startup is expanding into the U.S. market. This move demonstrates State Street’s commitment to blockchain solutions.
Over the past year, State Street has integrated its digital-assets team into its main operations. This strategy aims to align traditional finance with emerging digital technologies. Additionally, the firm has partnered with Galaxy Asset Management to develop digital asset exchange-traded funds (ETFs).
Moreover, State Street is focusing on tokenizing assets like funds. A recent survey by the firm found that around 50% of 300 investment institutions might be ready to trade digital assets on and off distributed ledgers and blockchains.
State Street and Galaxy Digital’s New ETFs
State Street Global Advisors has teamed up with Galaxy Digital to launch new ETFs centered on digital assets. This partnership seeks to offer investors diversified exposure to the expanding digital asset market, including cryptocurrencies and blockchain technologies.
The proposed SPDR Galaxy Digital Asset Ecosystem ETF will invest in publicly traded companies within the digital asset field. This includes crypto exchanges, mining companies, hardware wallet providers, and crypto-focused venture capital firms.
Additionally, the ETF will explore opportunities in futures and spot ETF products, providing a comprehensive view of the digital asset market. This move aligns with the growing mainstream acceptance of digital assets as a viable asset class.
Furthermore, State Street Bank and Trust will manage administrative and accounting services for these digital asset ETFs. This partnership underscores State Street’s commitment to integrating traditional finance with emerging digital asset technologies.
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