Holding more than 60 trillion USD in assets! State Street Bank has announced: It will launch 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 platform.

The custody giant State Street, which holds more than $60 trillion in assets, announced on Tuesday that it expects to launch “tokenized fund” services in Luxembourg before the end of this year—signaling that Wall Street is accelerating the move of 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 capabilities in fund administration and asset custody.

Notably, State Street’s highlight is a “dual-track approach.” They know that tokenized assets cannot completely replace traditional funds overnight. Therefore, the biggest selling point of the new product is enabling 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 “full lifecycle” of tokenized funds—from issuance and management to custody. More importantly, whether the fund structure is digital or traditional, customers 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 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 development and successfully enables digital assets and traditional assets to work collaboratively within a unified institutional framework.”

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

However, how—or whether—this service ultimately goes live will still depend on whether local regulators give approval 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 this year’s first quarter, State Street’s custody and administration assets totaled $54.5 trillion, and its asset management scale also reached $5.6 trillion.

State Street’s move is not without precedent. The firm has previously partnered with Swiss digital asset company Taurus to actively develop crypto asset custody services; senior executives at State Street have also publicly said that over the coming years, institutional investors will inevitably continue increasing their exposure to digital assets.

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

State Street’s latest move is designed to seize this tokenization boom by laying “market infrastructure” in advance.

• This article is reprinted with permission from: 《BlockCast》
• Original title: 《Wall Street Custody Giant Makes a Move! State Street: to Launch “Tokenized Fund” Services by the End of This Year》
• Original author: Block Sister MEL