Holding over 60 trillion dollars in assets! State Street Bank announces: Launching tokenized fund services before the end of this year

State Street plans to launch tokenized fund services in Luxembourg by the end of this year, integrating digital and traditional assets into a unified institutional framework, with full lifecycle management handled by its platform.

State Street (State Street), the custody giant holding more than $60 trillion in assets, announced on Tuesday that it expects to roll out “tokenized fund” services in Luxembourg before the end of this year, signaling that Wall Street is accelerating its move to bring traditional fund infrastructure onto the blockchain.

According to an official statement, the service will be provided by State Street Investment Services to expand the bank’s fund administration and asset custody capabilities.

Notably, State Street’s key highlight is its “dual-track approach.” They understand that tokenized assets cannot fully replace traditional funds overnight, so the biggest selling point of the new product is enabling seamless integration of tokenized funds and traditional financial instruments within the same institutional framework.

State Street said that this new service will run through its digital asset platform, covering the “full lifecycle” of tokenized funds—from issuance and management to custody. More importantly, regardless of whether the fund structure is digital or traditional, clients can operate through a single interface and enjoy the same level of risk control and compliance governance.

It is reported that State Street Global Advisors will become one of the first adopters of this system. Angus Fletcher, Global Head of Digital Asset Solutions at State Street, said: “This release reflects our concrete progress in infrastructure development, successfully enabling digital assets and traditional assets to operate collaboratively within a unified institutional framework.”

As for why the first launch site was chosen in Europe, State Street explained that Luxembourg has an extremely mature fund ecosystem and a comprehensive legal framework to support “digital native fund” structures.

However, how—or whether—this service will ultimately go live will still depend on whether local regulators give approval and on the readiness of internal systems.

Targeting the RWA Blue Ocean, Traditional Finance Accelerates Market Entry

As one of the world’s largest providers of institutional financial services, as of the end of this year’s first quarter, State Street’s custodial and administrative assets totaled $54.5 trillion, while its asset management scale reached $5.6 trillion.

State Street’s move is not without precedent. The bank has previously partnered with Swiss digital asset company Taurus to actively develop crypto asset custody services; senior executives have also publicly stated that institutional investors will continue to increase their exposure to digital assets over the coming years.

In fact, the narrative of “asset tokenization” is sweeping through the global financial industry. Ark Invest and Standard Chartered both predict that the tokenization market for real-world assets (RWA) will experience explosive growth over the next few years, rising to trillions of dollars. Among them, tokenized funds, U.S. Treasuries, and money market products will become the main engines driving this wave.

State Street’s latest move is designed to capture this tokenization hot trend by laying down “market infrastructure” in advance.

• This article is reprinted with permission from: 《BlockBeats》
• Original title: 《Wall Street Custodian Giant Takes Action! State Street: Launching “Tokenized Fund” Service by End of Year》
• Original author: Block Sister MEL