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State Street Joins JPMorgan as Custodian for Tokenized Debt; Chainlink Tie Could Accelerate RWA Adoption
State Street is now a third‑party custodian for JPMorgan’s tokenized debt platform, enabling institutional custody of blockchain-based debt securities and settling a $100M tokenized commercial debt purchase—marking a major step for institutional adoption of tokenized real‑world assets.
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State Street joins JPMorgan as first third‑party custodian for tokenized debt.
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Inaugural trade: $100 million in tokenized commercial debt from OCBC settled on the platform.
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The tokenized RWA market rose ~65% year‑to‑date to a $26.4B market cap (excluding stablecoins).
State Street custody of tokenized debt: State Street joins JPMorgan’s tokenized debt platform as custodian—read implications for institutional investors and next steps.
What does State Street custody for tokenized debt mean?
State Street custody of tokenized debt means the asset manager will securely hold blockchain‑based debt securities on behalf of institutional clients, acting as a regulated, third‑party custodian to enable settlement, safekeeping and operational integration with JPMorgan’s tokenized debt platform. This supports institutional access to tokenized real‑world assets (RWAs).
How did the inaugural transaction proceed and what were the details?
State Street joined JPMorgan’s Digital Debt Service (rebranded Kinexys) as its first external custodian and participated in the platform’s opening transaction. The asset manager purchased $100 million in tokenized commercial debt issued by OCBC. The trade demonstrates custody, settlement and transfer capabilities on a permissioned chain used by institutional counterparties.
Source: State Street
Why are banks and custodians moving into tokenized RWAs?
Institutional demand for faster settlement, greater liquidity and programmable ownership models is driving custodians and banks to support tokenized RWAs. Tokenization can increase capital velocity by enabling near‑instant transfer and fractional ownership while preserving regulatory controls through permissioned platforms and institutional custody standards.
How is JPMorgan developing the infrastructure for tokenized debt?
JPMorgan launched its blockchain initiatives in 2020 and rebranded its tokenization stack to Kinexys in 2024. Kinexys provides a permissioned chain and settlement rails for tokenized debt instruments. Partnerships with oracle and infrastructure providers have focused on cross‑chain settlement and payment finality for institutional participants.
Oracle provider Chainlink has collaborated with Kinexys to develop payment infrastructure for settling tokenized RWA transactions between financial institutions. Chainlink founder Sergey Nazarov said tokenizing high‑quality assets onchain improves capital velocity and strengthens the broader digital asset ecosystem by locking value onchain.
Current overview of the tokenized RWA market, excluding stablecoins. Source: RWA.XYZ