Breaking News: $4 Trillion Financial Giant State Street Aims to Join the Cryptocurrency Market and Create Its Own Token!

Boston-based financial services and banking giant State Street is reportedly exploring ways to process payments via blockchain, according to an anonymous source.

The company, which recently reported higher-than-expected revenue and interest income, is considering creating its own stablecoin and deposit token.

A stablecoin is a type of cryptocurrency pegged to a stable asset, such as the dollar. The proposed deposit token would represent customer deposits on a blockchain. However, those plans have not been made public and a State Street spokesperson declined to comment.

In addition to creating its own digital currency, State Street is also considering joining digital cash consortium efforts. The company is evaluating settlement options through its investment in Fnality, a blockchain payments startup expanding in the U.S. A spokesperson for Fnality also declined to comment.

Using blockchain technology for payment settlements has long been a proposition in the crypto industry. Blockchain, a digital ledger, could potentially make payments faster and cheaper. Many traditional financial companies, including PayPal, Visa, and Mastercard, have already started offering crypto payment services. PayPal introduced its own stablecoin last year, while Visa and Mastercard enable stablecoin-based payments. The largest U.S. bank, JPMorgan Chase & Co., is also exploring deposit tokens.

However, the launch of a deposit token by State Street would require approval from U.S. banking regulators.

State Street has been increasingly expanding its digital asset efforts. Earlier this year, the company integrated team members focused on digital assets into its overall business, aiming to create a tighter integration between traditional finance and digital assets. State Street, the third-largest ETF manager, currently crypto para It offers services such as fund management and accounting for its ETFs. The company has also expanded its digital asset efforts by partnering with Galaxy Asset Management to develop digital asset ETFs.

State Street plans to focus on tokenizing assets like funds in the coming months. According to a recent digital asset survey conducted by the firm, nearly half of the 300 investment institutions surveyed said they are prepared to trade digital assets on and off distributed ledgers and blockchains, provided they have the appropriate infrastructure.

*This is not investment advice.