State Street is reportedly in the process of developing its own stablecoin and deposit token. The company is exploring opportunities in blockchain technology and intends to leverage blockchain for payment settlements. This initiative is part of State Street’s broader strategy to integrate digital assets, including cryptocurrencies, into its range of services and offerings.
The proposed stablecoin would be a blockchain-based currency pegged to a traditional asset, likely the dollar, while the deposit token would represent customer deposits recorded on a blockchain.
Bloomberg first reported on this development.
State Street Ventures into Stablecoin Development
The financial industry is witnessing a surge in stablecoin initiatives, mirroring efforts by major players. PayPal, for instance, introduced its own dollar-backed stablecoin, PYUSD, in collaboration with Paxos last year.
As retail investors and fintech institutions increasingly adopt stablecoins, regulatory clarity in the U.S. remains uncertain. Legislative efforts led by Reps. Maxine Waters and Patrick McHenry, along with ongoing Senate discussions, are shaping the regulatory landscape. SEC Chair Gary Gensler has drawn parallels between stablecoins and money market funds, though recent developments indicate a potential relaxation of regulatory scrutiny.
State Street Global Advisors, in collaboration with Galaxy Asset Management, launched exchange-traded funds focusing on crypto firms last month. Additionally, the firm established a dedicated digital assets unit in 2021.
