Holding over 60 trillion dollars in assets! State Street Bank announces: Launching tokenized fund services by the end of this year

State Street plans to roll out tokenized fund services in Luxembourg by the end of this year, integrating digital and traditional assets into a unified institutional framework, with full lifecycle management handled by its own platform.

State Street (State Street), the custody giant with more than $60 trillion in assets, announced on Tuesday that it expects to introduce a “tokenized fund” service in Luxembourg before the end of this year—marking Wall Street’s accelerating effort to move traditional fund infrastructure onto the blockchain.

According to an official statement, the service will be provided by State Street Investment Services to expand the bank’s fund administration and asset custody capabilities.

Notably, State Street’s highlight is its “dual-track approach.” They know that tokenized assets cannot fully replace traditional funds overnight, so the biggest selling point of the new product is to enable seamless integration of tokenized funds and traditional financial instruments within the same institutional framework.

State Street said the new service will run through its digital asset platform, covering the entire lifecycle of tokenized funds—from issuance and management to custody. More importantly, regardless of whether the fund framework is digital or traditional, clients can operate through a single interface and enjoy the same level of risk control and compliance governance.

It is understood that State Street Global Advisors will be among the first adopters of this system. Angus Fletcher, Global Head of Digital Asset Solutions at State Street, said: “This launch reflects our concrete progress in infrastructure buildout, successfully enabling digital assets and traditional assets to operate collaboratively within a unified institutional framework.”

As for why the initial launch site was chosen in Europe, State Street explained that Luxembourg has an extremely mature fund ecosystem and a robust legal framework to support “digital native fund” structures.

However, how (or whether) this service ultimately goes live still depends on whether local regulators give the green light and on the readiness of the internal systems.

Targeting the RWA blue ocean, traditional finance accelerates market entry

As one of the world’s largest institutional financial service providers, as of the end of this year’s first quarter, State Street’s custody and administration assets totaled $54.5 trillion, while its asset management scale reached $5.6 trillion.

State Street’s push is not without precedent. The bank previously teamed up with Swiss digital asset company Taurus to actively develop crypto asset custody services; senior executives at the firm have also publicly stated that institutional investors will continue to increase their exposure to digital assets in the coming years.

In fact, the narrative of “asset tokenization” is sweeping across the global financial industry. Ark Invest and Standard Chartered both predict that the tokenization market for real-world assets (RWA) will grow explosively over the next few years, soaring to trillions of dollars. Among them, tokenized funds, US Treasuries, and money market products will serve as the main engines driving this wave.

State Street’s latest move is aimed at seizing this tokenization boom by laying “market infrastructure” in advance.

• This article is reprinted with permission from: 《BlockBeats》
• Original title: 《Wall Street Custody Giant Moves! State Street: Launching “Tokenized Fund” Service by End of Year》
• Original author: Block Sister MEL