State Street joins JPMorgan's blockchain debt platform as first third-party custodian

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State Street (NYSE:STT [https://seekingalpha.com/symbol/STT]) has become the first third-party custodian [https://seekingalpha.com/pr/20208405-state-street-becomes-first-third-party-custodian-to-launch-on-j-p-morgan-s-digital-debt] on JPMorgan Chase's (NYSE:JPM [https://seekingalpha.com/symbol/JPM]) blockchain-based digital debt service, marking the move with a $100M commercial paper transaction, it said on Thursday.

As an onboarded custodian to the digital debt service, State Street can now offer clients access to debt instruments that are issued, settled and serviced using blockchain technology while maintaining the security and regulatory compliance standards expected from traditional custody services. The service is currently available only in the U.S.

The integration advances the broader trend of financial institutions adopting blockchain-based debt securities to enable precision-timed settlement, with T+0 settlement available as an option.

“Through our direct participation in J.P. Morgan’s Digital Debt Service, we are advancing our ability to deliver a fully integrated front-, middle-, and back-office solution built on blockchain technology,” said Donna Milrod, chief product officer at State Street. “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.

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