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State Street joins JPMorgan’s blockchain-based tokenized asset platform Digital Debt Service as the first third-party custodian

August 22, 2025 //  by Finnovate

State Street is pushing deeper into digital assets by joining JPMorgan’s blockchain-based tokenized asset platform Digital Debt Service as the first third-party custodian. The first transaction State Street anchored was a $100 million tokenized commercial paper issuance by the Oversea-Chinese Banking Corporation (OCBC), a Singapore-based banking group.  State Street Investment Management, the bank’s asset management arm, purchased the debt. J.P. Morgan Securities acted as placement agent. The tokenized asset market could grow could balloon in the next few years, though projections vary from McKinsey’s $2 trillion by 2030 to Ripple and BCG’s almost $19 trillion by 2033. By joining JPMorgan’s blockchain platform, State Street can now offer clients custody of tokenized debt securities without changing its traditional servicing model. In this particular case, State Street manages client holdings in a digital wallet directly connected to JPMorgan’s system, eliminating manual steps in settlement and recordkeeping. The infrastructure supports delivery-versus-payment settlement, with the option for same-day (T+0) settlement, and automates corporate actions such as interest payments and redemptions through smart contracts.

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