TLDR
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State Street debuts digital debt custody with J.P. Morgan blockchain boost
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OCBC’s $100M deal kicks off tokenized debt on Kinexys by J.P. Morgan
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State Street integrates digital custody via J.P. Morgan’s Kinexys platform
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Blockchain meets bonds: State Street powers custody for tokenized debt
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Real-time digital debt custody now live via State Street & J.P. Morgan
State Street has launched blockchain-based digital debt custody services via J.P. Morgan’s Digital Debt Service platform. The move strengthens its digital strategy by managing digital wallets and supporting blockchain infrastructure. This advancement also marks a significant shift in tokenized fixed income asset servicing.
J.P. Morgan’s Digital Debt Service now supports full integration of State Street’s front-, middle-, and back-office operations. The partnership enables seamless custody of tokenized debt issued, settled, and serviced using blockchain infrastructure. As the first third-party custodian on the platform, State Street ensures security and regulatory compliance throughout.
The platform facilitates real-time digital settlement and lifecycle management of debt securities. Tokenized securities are held in State Street’s digital wallet within the J.P. Morgan ecosystem. This integration brings blockchain-based digital debt custody directly into mainstream capital markets.
Milestone Transaction: OCBC $100M Paper Initiates Platform Utility
The platform’s inaugural transaction involved a $100 million commercial paper issued by Oversea-Chinese Banking Corporation (OCBC). State Street Investment Management served as the front-office participant and anchor buyer for the issuance. J.P. Morgan Securities LLC handled placement responsibilities for the commercial paper.
State Street has joined J.P. Morgan’s Digital Debt Service as the first third-party custodian, enabling blockchain-based custody for debt securities. The first transaction was a $100 million commercial paper issued by OCBC. Powered by J.P. Morgan’s Kinexys tokenization platform,…
— Wu Blockchain (@WuBlockchain) August 21, 2025
This transaction showcases blockchain-based digital debt custody in action with delivery-versus-payment and optional T+0 settlement. It demonstrates how tokenized debt can streamline short-term financing while reducing counterparty and settlement risks. The entire investment lifecycle operated on-chain with full automation and secure custody.
The transaction also reflects State Street’s operational integration across roles—investment management, custody and processing—via blockchain-enabled workflows. It underscores the firm’s ability to manage tokenized debt through a unified and automated custody framework. As a result, clients gain a simplified, end-to-end digital servicing model.
Seamless Integration with J.P. Morgan’s Kinexys Tokenization Platform
J.P. Morgan’s Digital Debt Service runs on Kinexys, a multi-asset tokenization platform built for institutional-grade issuance and settlement. It supports digital wallet infrastructure and enables blockchain-based digital debt custody with no manual intervention. Smart contracts power key functions like payments, redemptions, and corporate actions.
State Street ensures clients maintain familiar servicing standards while embracing new blockchain efficiencies. Precision-timed settlement adds transparency, reliability, and speed to capital markets transactions. This evolution reduces friction in traditional settlement processes and enhances overall operating efficiency.
State Street’s participation also enhances the scalability of the Kinexys platform by demonstrating institutional compatibility. The collaboration brings together blockchain innovation with legacy custody infrastructure under a single operating model. The system is now live and operational for U.S. clients seeking blockchain-based custody services.
Digital Strategy Strengthened with Unified On-Chain Custody Model
State Street’s expansion into blockchain-based digital debt custody aligns with its broader digital asset strategy. The firm aims to provide an integrated servicing model across tokenized and traditional financial instruments. Its digital wallet infrastructure forms the foundation for broader blockchain interoperability.
With this launch, State Street delivers operational control, transparency, and automation for digital debt instruments through a single custody solution. Clients can now access blockchain-based instruments without adjusting their established operating procedures. The solution modernizes debt markets while maintaining compliance and risk controls.
The joint offering from J.P. Morgan and State Street represents a significant step in blockchain adoption for institutional capital markets. As blockchain-based digital debt custody gains traction, it offers efficiency, speed, and accuracy in managing tokenized securities. This development positions both firms as leaders in the digital transformation of fixed income markets.
