State Street Corporation has become the first third-party custodian to launch on JPMorgan’s Digital Debt Service (DDS), marking a milestone in the adoption of blockchain technologies for institutional debt securities custody. This collaboration enables State Street to offer custody services for debt instruments that are issued, settled, and managed through JPMorgan’s blockchain.
State Street is one of the world’s largest and most influential financial institutions. Founded in 1792, it is the second-oldest continuously operating US bank. The corporation is a global leader in asset management and custodial services, with approximately $4.7 trillion in assets under management and $46.6 trillion in custody and administration.
The launch on JPMorgan’s Digital Debt Service exemplifies State Street’s digital strategy to integrate blockchain capabilities with its existing infrastructure. The partnership allows the custody of tokenized debt securities with features such as precision-timed settlement (including same-day settlement options), automated lifecycle management, and streamlined corporate actions via smart contracts, according to its press release.
This advancement was tested in a $100 million commercial paper transaction executed seamlessly on-chain by State Street Investment Management, the firm’s asset management business.
“This partnership with JPMorgan’s Digital Debt Service represents a transformative movement for institutional asset management,” said Pia McCusker, global head of Cash Management for State Street Investment Management.
The move signals a broader transformation within the banking industry, especially in fixed income markets. By adopting blockchain for debt securities custody, State Street and JPMorgan are modernizing short-term debt markets, reducing operational risks, enhancing settlement speed, and lowering costs through automation. The integration will support interoperability across blockchain networks while maintaining compliance with regulatory and security requirements.
For the banking and financial services sectors, this announcement highlights the increasing institutional acceptance of blockchain technology beyond cryptocurrencies, positioning tokenized assets as a significant part of the future financial ecosystem. It signals a shift from experimental blockchain projects to practical, large-scale deployment in traditional capital markets.
