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 launch 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 platform.

Holding more than $60 trillion in assets, the custody giant State Street announced on Tuesday that it expects to roll out its “tokenized fund” service in Luxembourg before the end of this year—signaling that Wall Street is accelerating efforts 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.

Worth noting is that State Street’s key highlight is its “dual-track approach.” They know tokenized assets cannot completely replace traditional funds overnight, so the biggest selling point of the new product is enabling tokenized funds and traditional financial instruments to be seamlessly integrated within the same institutional framework.

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

It is reported that State Street Global Advisors will become one of 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 build-out, successfully enabling digital assets and traditional assets to operate collaboratively within a unified institutional framework.”

As for why the initial launch location is Europe, State Street explained that Luxembourg has an extremely mature fund ecosystem and a comprehensive legal framework that supports “digital-native fund” structures.

However, whether and how this service ultimately goes live will still depend on whether local regulators give the go-ahead and on the readiness of 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 Q1 this year, State Street’s custody and administration assets totaled $54.5 trillion, and its asset management scale reached $5.6 trillion.

State Street’s latest move was actually foreshadowed. The bank previously teamed up with Swiss digital asset company Taurus to actively develop crypto-asset custody services; senior executives at State Street have also publicly said 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 sector. Ark Invest and Standard Chartered both predict that the tokenized real-world assets (RWA) market will grow explosively over the next few years, reaching trillions of dollars. Among the key drivers will be tokenized funds, US Treasuries, and money market products.

State Street’s latest layout is aimed at capturing this tokenization wave by laying out “market infrastructure” in advance.

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