State Street Corporation has become the first third-party custodian to launch on JPMorgan’s Digital Debt Service.
The alliance enables State Street to provide custody services for debt securities that are issued, settled, and serviced using blockchain technology, offering a simple and efficient journey for clients in the US.
Bringing custody capabilities to JPMorgan’s solution
The move was accompanied by the acquisition of a USD 100 million commercial paper transaction with State Street Investment Management, the asset management business of State Street Corporation. The purchase reflects the Digital Debt Service’s ability to modernise short-term debt markets by enabling timely settlement with the T+0 option available.
The transaction also highlights the full integration of State Street’s features across the investment lifecycle, with State Street Investment Management serving as the front-office investor, and State Street providing middle and back-office functionality. With this collaboration, State Street can now offer clients access to blockchain-based debt instruments while still maintaining security and compliance with industry standards.
The new capabilities also include precision-timed settlements that enable reliability with reduced counterparty risk, and smart contracts that automatically simplify payments, redemptions, and other corporate actions. With this, the two companies aim to contribute to institutional asset management. State Street’s investment in the commercial paper transaction in blockchain format for its Short Term Investment Fund strengthens the company’s position in the digital space of fixed-income markets.
As digital asset adoption and investment continue to increase, JPMorgan’s solution offers clients the opportunity to explore the use of blockchain in unlocking ecosystem-wide efficiencies across capital markets. Through this, the bank is advancing its ability to deliver a fully integrated front-, middle-, and back-office solution built on blockchain technology. The rollout highlights a key step for State Street’s digital strategy, laying the groundwork for interoperability across blockchain networks and on-chain digital wallets, as well as uniting institutional-grade infrastructure with emerging digital capabilities.
