State Street said Thursday that it has become the first third-party custodian to join J.P. Morgan’s Digital Debt Service, expanding institutional access to blockchain-based debt securities.
The move was marked by a $100 million commercial paper transaction issued by Oversea-Chinese Banking Corporation (OCBC), with State Street Investment Management acting as the anchor investor and J.P. Morgan Securities as placement agent.
The deal showcased the platform’s ability to enable precision-timed settlement, including T+0 settlement, and automated lifecycle management through smart contracts.
Integration with J.P. Morgan’s service is said to allow State Street to manage depository records for tokenised debt securities via a digital wallet.
The firm explained that the system is built on Kinexys Digital Assets, J.P. Morgan’s multi-asset tokenisation platform, and is currently available in the U.S.
“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.”
Pia McCusker, global head of Cash Management for State Street Investment Management, said the investment “demonstrates the tangible benefits this technology brings to our clients and positions them at the forefront of the digital transformation in fixed income markets.”
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