State Street, one of the world's largest asset managers and custodian banks with over $49 trillion in assets under custody, has become the first third-party custodian on JPMorgan's blockchain-based Digital Debt Service platform. This landmark development allows State Street to hold blockchain-based debt securities on behalf of institutional investors, marking a significant milestone in traditional finance's adoption of tokenized assets.
The platform's inaugural transaction involved State Street Investment Management purchasing $100 million in tokenized commercial paper from Singapore's Oversea-Chinese Banking Corporation (OCBC), one of Southeast Asia's oldest banks. J.P. Morgan Securities acted as placement agent for this transaction, which represents a major step in bringing traditional debt instruments onto blockchain infrastructure.
JPMorgan's platform, originally launched as Onyx in 2020 and rebranded to Kinexys in 2024, enables institutional clients to trade and settle tokenized debt instruments with increased efficiency, faster settlements (including same-day T+0 settlement), and lower administrative costs. The infrastructure supports delivery-versus-payment settlement and automates corporate actions such as interest payments and redemptions through smart contracts.
Donna Milrod, State Street's chief product officer, stated: "This launch reflects a meaningful step forward in our digital strategy — where we manage a digital wallet on-chain and lay the groundwork for interoperability across blockchain networks." The tokenized RWA sector has grown approximately 65% since the beginning of 2025, reaching a market capitalization exceeding $26.4 billion excluding stablecoins.