State Street Becomes First Third-Party Custodian on JPMorgan’s Tokenized Debt Platform
State Street has joined JPMorgan’s tokenized debt platform as the first third‑party custodian, enabling the long‑established asset manager and custodian bank to hold blockchain‑issued debt securities on behalf of institutional clients.
In the platform’s inaugural transaction, State Street acquired $100 million of tokenized commercial debt issued by Oversea‑Chinese Banking Corporation (OCBC), marking a practical use case for institutional custody of on‑chain debt instruments.
JPMorgan’s Digital Debt Service — part of the firm’s broader tokenization efforts that were rebranded to Kinexys in 2024 after the Onyx initiative — facilitates the trading and settlement of tokenized debt securities representing government and corporate bonds on a permissioned blockchain.
Kinexys has also been building interoperability and settlement infrastructure with partners. In 2024–2025 the platform worked with oracle and middleware providers to enable payments and cross‑chain transfers for tokenized real‑world assets (RWAs), showing growing institutional collaboration across the tokenization stack.
Industry participants argue that placing high‑quality assets on‑chain can increase capital velocity and strengthen links between traditional finance and crypto infrastructure, while experiments such as cross‑chain token transfers and custody by established banks aim to reduce frictions for institutional adoption.
The tokenized RWA market has expanded rapidly in recent months: since the beginning of 2025 the sector grew substantially, reaching a market capitalization measured in tens of billions of dollars (excluding stablecoins), underscoring rising institutional activity in tokenized debt and other real‑world assets.
State Street’s move to extend custody services to tokenized debt is being viewed as a milestone for the sector, signaling increasing engagement from major financial institutions and further bridging traditional custody models with blockchain‑based securities.
Report compiled from coverage by Cointelegraph.
