State Street Launches Digital Asset Platform; $51T Custodian Enters Tokenization Era
The $51.7T custodian moves beyond pilots with a full-stack platform for tokenized ETFs and stablecoins, partnering with Fidelity and Franklin Templeton.
State Street (STT), the world’s largest custodial bank with $51.7 trillion in assets, announced the launch of its Digital Asset Platform today. The move signals a decisive shift from pilot programs to core financial infrastructure, targeting the tokenization of money market funds (MMFs), ETFs, and deposits.
Institutional Gravity
The platform is not a testnet experiment. It is a full-stack infrastructure play integrated directly into State Street’s custody network, designed to service verified institutional flows. The bank confirmed it will support both private and public permissioned blockchain networks, bridging the gap between walled garden ledgers and open liquidity.
Joerg Ambrosius, President of Investment Services, framed the launch as an operational pivot:
“We are moving beyond experimentation and into practical, scalable solutions that meet the highest standards of security and compliance. By pairing blockchain connectivity with robust controls… we’re enabling institutions to confidently embrace tokenization as part of their core strategy.”
The Market Context
This rollout arrives as State Street reports a record $51.7 trillion in assets under custody (as of Q3 2025). The bank’s entry verifies a market thesis: tokenization is no longer a speculative vertical but a requirement for modern asset servicing. Internal data cites that a majority of institutional investors plan to double their digital asset exposure by 2029.
State Street stock (STT) reacted positively, trading near its all-time high of $134.67 following the news.
Partners & Technicals
The bank is not building in isolation. The platform launches with a roster of heavyweights, including Franklin Resources and Fidelity, alongside its own asset management arm. These partnerships suggest immediate utilization of the infrastructure for live tokenized products rather than empty plumbing.
The architecture focuses on three pillars: crypto-native wallet management, regulatory-grade custody, and cash capabilities (stablecoins/deposits). By targeting the settlement layer, State Street is effectively attempting to capture the fees associated with the 24/7 movement of tokenized capital.
