State Street, a major player in asset management and banking services, is working on the tokenization of bonds and money market funds but does not yet plan to issue a stablecoin or tokenized deposits. This was announced by Donna Milrod, the bank's Chief Product Officer, in an interview with Financial News.
The company is focused on two tokenization projects, which are expected to be completed next year. Their goal is to create tokenized collateral to cover margin requirements without the need to liquidate assets.
Milrod emphasized that tokenization could have prevented the 2022 crisis when pension funds were forced to sell assets to meet margin obligations. Instead, they could have used tokenized money market funds as collateral.
State Street is collaborating with the Swiss company Taurus to implement its tokenization projects.
