State Street has become the inaugural third-party custodian on JP Morgan’s digital debt service.
The digital debt service allows the issuance, settlement and servicing of tokenised blockchain-based debt securities. State Street can now provide custody service for these securities, with depository records of debt securities held on behalf of its clients kept in a JP Morgan digital wallet.
Digital cash settlement can then be completed without manual intervention.
Donna Milrod, chief product officer at State Street, said, “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.”
Currently a US-exclusive service, JP Morgan’s platform is built on its multi-asset tokensiation platform Kinexys Digital Assets.
In a transaction marking the partnership, State Street Investment Management was the front-office investor for a US$100 million commercial paper transaction by Oversea-Chinese Banking Corporation (OCBC).
Pia McCusker, global head of cash management for State Street Investment Management, commented, ““Our successful investment in the first commercial paper transaction in blockchain format for our Short Term Investment Fund demonstrates the tangible benefits this technology brings to our clients.”
JP Morgan Securities was the placement agent, while State Street provided middle- and back-office services.
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