TLDR
- State Street becomes the first third-party custodian on JPMorgan’s Digital Debt Service blockchain platform for tokenized assets
- The bank anchored a $100 million tokenized commercial paper transaction from Singapore’s OCBC bank
- State Street manages $49 trillion in assets under custody and $5.1 trillion in assets under management
- The tokenized real-world asset sector has grown 65% since early 2025, reaching over $26.4 billion market cap
- Tokenized assets are projected to grow from $2 trillion by 2030 to nearly $19 trillion by 2033
State Street has become the first third-party custodian on JPMorgan’s blockchain platform for tokenized debt securities. The Boston-based custody bank with $49 trillion in assets under management joined JPMorgan’s Digital Debt Service platform to offer clients custody of blockchain-based debt instruments.
We are excited to announce that State Street is the first third-party custodian to launch on J.P. Morgan’s digital debt service, bringing blockchain-based debt securities custody to institutional clients. Learn more: https://t.co/sH3SuWBliL pic.twitter.com/QXogq0V1Vd
— State Street (@StateStreet) August 21, 2025
The inaugural transaction involved State Street anchoring a $100 million tokenized commercial paper issuance by the Oversea-Chinese Banking Corporation (OCBC). OCBC is a Singapore-based banking group that issued the digital commercial paper on JPMorgan’s blockchain infrastructure.
State Street Investment Management, the bank’s asset management arm, purchased the tokenized debt. J.P. Morgan Securities served as the placement agent for the transaction.
The partnership allows State Street to custody tokenized debt securities without changing its traditional servicing model. The bank manages client holdings in a digital wallet that connects directly to JPMorgan’s blockchain system.
This setup eliminates manual steps in settlement and recordkeeping processes. The infrastructure supports delivery-versus-payment settlement with the option for same-day settlement.
Digital Infrastructure Features
The platform automates corporate actions including interest payments and redemptions through smart contracts. State Street can now offer these services while maintaining its existing operational framework.
“This launch reflects a meaningful step forward in our digital strategy — where we manage a digital wallet on-chain and lay the groundwork for interoperability across blockchain networks,” said Donna Milrod, State Street’s chief product officer.
State Street has pursued other tokenization initiatives beyond this JPMorgan partnership. The bank has worked on tokenizing bonds and money market funds in previous projects.
The firm selected Switzerland-based Taurus as a tokenization partner for these earlier initiatives. These efforts show State Street’s broader push into digital asset custody services.
Market Growth and Industry Adoption
The tokenized real-world asset sector has experienced rapid growth in 2025. The market has expanded by approximately 65% since the beginning of the year.
Current market capitalization for tokenized assets excluding stablecoins exceeds $26.4 billion according to RWA.xyz data. This growth reflects increasing institutional adoption of blockchain-based financial instruments.
JPMorgan launched its blockchain services under the Onyx brand in 2020. The company rebranded the project to Kinexys, its RWA tokenization platform, in 2024.
Oracle provider Chainlink partnered with Kinexys in May to develop payment infrastructure for tokenized RWA transactions. In June, Kinexys, Chainlink and RWA platform Ondo Finance completed a crosschain transfer of tokenized Treasury funds.
Projections for tokenized asset growth vary widely across industry reports. McKinsey estimates the market could reach $2 trillion by 2030, while Ripple and BCG project nearly $19 trillion by 2033.
State Street joins other major financial institutions exploring tokenized assets and blockchain custody services. The bank’s entry as JPMorgan’s first third-party custodian represents institutional adoption of blockchain infrastructure for traditional financial products.
