Today State Street announced it has joined JP Morgan’s Digital Debt Service as a third party custodian. In April last year JP Morgan launched the platform as an issuance service using its Kinexys permissioned blockchain, with the City of Quincy issuing a $10 million digital bond. In State Street’s first transaction on the platform, it served as custodian for a $100 million commercial paper issuance by Singapore’s OCBC Bank. The custody bank’s asset management arm State Street Investment Management bought the commercial paper.
Shortly after launching the Digital Debt Service as part of its Kinexys Digital Assets offering, JP Morgan adopted a strategy of opening the platform to third parties – first inviting third-party applications and now adding custodians like State Street. This approach addresses concerns that standalone permissioned blockchains can create the very silos that blockchain technology originally aimed to eliminate. State Street is the world’s second largest custodian with $49 trillion in assets under custody and administration, so this addition expands support to a large group of investors.
“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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