Report: State Street Considering Several Blockchain-Based Projects
State Street is reportedly looking at a number of options for settling payments on blockchain. The financial services and banking firm is considering creating its own stablecoin, creating its own deposit token, joining digital-cash consortium efforts, and developing settlement options through blockchain payment startup Fnality, in which it has an investment, Bloomberg reported Wednesday (July […]
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State Street is reportedly looking at a number of options for settling payments on blockchain.
The financial services and banking firm is considering creating its own stablecoin, creating its own deposit token, joining digital-cash consortium efforts, and developing settlement options through blockchain payment startup Fnality, in which it has an investment, Bloomberg reported Wednesday (July 17), citing an unnamed source.
State Street did not immediately reply to PYMNTS’ request for comment.
With these efforts, State Street would join other companies that are exploring or implementing crypto settlement, according to the report.
These companies include PayPal, which introduced its own stablecoin; Visa and Mastercard, which enable stablecoin-based settlement; and JPMorganChase, which is exploring deposit tokens, the report said.
Earlier this year, State Street integrated its team members focused on digital assets into its overall business, seeking closer ties between digital assets and traditional finance, per the report.
When State Street reorganized its digital assets division in January, it was reported that most of the division’s employees moved to other units of the company and that the company continues to provide clients with services and market infrastructure for digital assets.
In a statement provided to PYMNTS at the time, State Street said: “In an effort to better deliver our digital expertise and solutions to clients, we have brought together our traditional custody and digital finance in a seamless interoperable customer experience. This approach is reducing fragmentation for clients and is making the digital transition as easy as possible for investors.”
In March, it was reported that State Street was one of more than three dozen participants in a recently completed pilot project that looked to reframe assumptions about the use of blockchain-based applications within traditional finance.
The project, called the Canton Network, brought together 15 asset managers, 13 banks, four custodians, three exchanges and a stablecoin issuer to explore the potential of a privacy-enabled open blockchain network allowing for real-time settlement and immediate reconciliation across counterparty systems.
It proved that blockchain could be leveraged to streamline and synchronize financial applications while adhering to regulatory asset control, security and data privacy requirements.
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