State Street Corporation has unveiled a comprehensive crypto platform. The asset manager with $51.7 trillion in assets under custody and administration (AUCA) now offers tokenized deposits, stablecoins, and crypto-based funds for institutional clients.
The new State Street crypto platform includes wallet management, custody services, and cash functions. It supports both private and public blockchain networks. The Boston-based financial house is moving from pure back-office services toward active product development in the crypto space.
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Technological foundation and partnerships
State Street relies on the infrastructure of Swiss company Taurus SA. The two companies closed the partnership in August 2024. Three core products are being used: Taurus-PROTECT for digital asset custody, Taurus-CAPITAL for tokenization, and Taurus-EXPLORER for blockchain connectivity.
In December 2025, State Street also announced a cooperation with Galaxy Digital. Together, the companies are developing the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP). Ondo Finance plans an initial investment of around $200 million. The fund is set to launch on the Solana blockchain in early 2026. Integrations with Stellar and Ethereum via Chainlink will follow later.
The platform integrates seamlessly into existing systems. State Street already provides administration and accounting for crypto ETFs and other digital products. The new infrastructure significantly expands this offering.
Strategic repositioning in the crypto market
State Street is pursuing a different approach than competitors like BlackRock or Fidelity. These launched spot Bitcoin and Ethereum ETFs with direct crypto ownership. State Street, on the other hand, focuses on actively managed ETFs with indirect crypto exposure. The focus is also on tokenization of traditional assets.
The immediate market impact is likely to be limited. Still, the move signals a significant shift among traditional financial institutions. 40 percent of institutional investors now have dedicated digital asset teams. Nearly 60 percent plan to increase their crypto allocations in the coming year.
Chief Product Officer Donna Milrod emphasized the strategic dimension. Clients are restructuring their operating models around digital assets. The shift is not just technical, but fundamentally strategic.
Regulatory environment as catalyst
The SEC's repeal of SAB 121 on January 23, 2025, paved the way for banks in the crypto business. The original 2022 guidance required high capital reserves for crypto asset custody. This made the business unattractive for traditional banks.
The new SAB 122 guidance allows institutions more flexible risk assessment. State Street had publicly called for changes to SAB 121. Milrod stated back in 2024: Once US regulation is supportive, State Street will also offer digital custody services.
In July 2025, the US House of Representatives passed the CLARITY Act and the GENIUS Act. These laws create a clearer regulatory framework for digital assets, even though the latter is facing delays. The SEC also established a crypto task force under Commissioner Hester Peirce. The regulatory climate in the United States has thus fundamentally changed.
Competition among asset managers intensifies
State Street is not alone with its push. Bank of New York Mellon launched tokenized deposit services. Fidelity, Franklin Resources, and JPMorgan introduced tokenized money market funds. T. Rowe Price is also evaluating crypto funds. The difference lies in the scale. State Street manages more assets than any other competitor in the custody business. The $51.7 trillion in assets under custody and $5.4 trillion in AUM give the platform considerable weight. The company employs around 52,000 people in over 100 markets worldwide.
A State Street study shows institutional interest. Over half of the surveyed institutions expect 10 to 24 percent of their investments to be tokenized by 2030. Private equity and private bonds are considered the first candidates for tokenization.
Outlook for the institutional crypto market
State Street's entry marks a turning point for institutional crypto adoption. Traditional financial giants are increasingly treating digital assets as strategic core business. The combination of improved regulation and mature infrastructure is accelerating this trend.
The average exposure of institutional investors to digital assets is expected to double within three years. State Street positions itself with the new platform at the intersection of traditional finance and blockchain technology. The focus on tokenization rather than direct crypto ownership could serve as a blueprint for other major banks.
