The post State Street Launches Tokenized Funds and Digital Cash Products appeared on BitcoinEthereumNews.com.

Blockchain Tokenization is quickly moving from theory to execution across Wall Street, and some of the world’s largest financial institutions no longer want to sit on the sidelines. One of them is now preparing to turn blockchain infrastructure into actual investable products. State Street Corp., long known for its behind-the-scenes role in global finance, is stepping into a more active position in digital assets. Instead of focusing solely on administration and accounting, the firm is building a platform that will allow traditional investment products and cash instruments to exist in tokenized form. Key Takeaways State Street is shifting from crypto support services to creating tokenized funds and digital cash products. The move reflects growing institutional confidence in tokenization as core financial infrastructure. Custody for tokenized assets could follow later, depending on regulation. The plan includes blockchain-based versions of money-market funds and exchange-traded funds, as well as digital cash instruments such as tokenized deposits. Stablecoins are also being evaluated as part of the broader framework. From servicing crypto to creating it Until now, State Street’s exposure to crypto largely involved supporting clients that already held digital assets or crypto-linked ETFs. This new initiative marks a clear break from that model. The firm intends to work directly with institutional clients, external asset managers, and its own investment arm to design products rather than simply process them. That shift reflects a belief that tokenization will become a core layer of financial markets, not just an add-on service. Early partnerships signal direction State Street has already begun testing this approach. Last month, it partnered with Galaxy Digital, founded by Michael Novogratz, to launch a tokenized fund. The collaboration highlighted how traditional financial infrastructure and crypto-native expertise can intersect to create new types of investment vehicles. Joerg Ambrosius, president of investment services, described the broader…

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Filed under: News - @ January 15, 2026 9:22 pm