Boston-based asset management firm State Street is exploring the tokenization of bonds and money market funds, although it currently has no plans to develop a stablecoin or tokenized deposits. According to Donna Milrod, the bank's chief product officer, "We don’t have a current plan to issue a stablecoin or tokenise a deposit. That doesn’t mean we won’t at some point, but we don’t feel the need to do that right now."

A report from July noted that State Street was looking into launching a stablecoin and creating tokenized deposits. Instead, the company has two ongoing projects directed towards the tokenization of a bond and a money market fund.

Milrod emphasized the operational efficiencies tokenized assets could introduce while acknowledging that it's essential to find the commercial value in the process. "The industry is figuring out where the commercial value is," she stated. She also mentioned that such collateral measures could have mitigated the effects of the 2022 liability-driven crisis.

State Street is expanding its digital asset involvement, having recently chosen the Swiss firm Taurus as a partner for tokenization. Milrod indicated that once the regulatory landscape in the U.S. becomes more accommodating, the bank would also offer digital asset custody.