State Street Eyes Potential Stablecoin and Deposit Token

cryptonews.com:

State Street is reportedly evaluating the introduction of a stablecoin and deposit token to facilitate blockchain-based payments and settlements.

According to a recent report by Bloomberg, a person familiar with the matter indicated that the Boston-based financial giant is exploring blockchain solutions to enhance its payment systems, such as stablecoin and deposit token.

The asset manager is considering joining digital-cash consortium efforts, aligning with its investment in Fnality, a blockchain payment startup expanding into the U.S. market. This indicates State Street’s commitment to blockchain-based solutions.

Over the past year, State Street has integrated its digital-assets team into its overall business. This move aims to better align traditional finance with emerging digital technologies. The firm has also partnered with Galaxy Asset Management to develop digital asset exchange-traded funds (ETFs).

In addition to these developments, State Street is focusing on tokenizing assets such as funds. A recent survey by the firm found that about half of the 300 investment institutions surveyed could be ready to trade digital assets on and off distributed ledgers and blockchains.

State Street Global Advisors has recently partnered with Galaxy Digital to launch new ETFs focused on digital assets. This collaboration aims to offer investors diversified exposure to the growing digital asset market, including cryptocurrencies and blockchain technologies.

The proposed SPDR Galaxy Digital Asset Ecosystem ETF will invest in publicly traded companies within the digital asset space. This includes crypto exchanges, mining companies, hardware wallet providers, and crypto-focused venture capital firms.

Besides, the ETF will explore