News
State Street is considering blockchain-based projects
Highway is reportedly evaluating various options for regulating payments via blockchain.
The financial services and banking company is considering creating its own stablecoin, creating its own deposit token, joining the efforts of the digital money consortium, and developing settlement options by initiating blockchain payments. Purposewhere he has an investment, Bloomberg reported Wednesday (July 17), citing an anonymous source.
State Street did not immediately respond to PYMNTS’s request for comment.
With these efforts, State Street would join other firms exploring or implementing cryptocurrency transactions, the report says.
These companies include Payment via PayPalwhich introduced its own stablecoin; Visa AND MasterCardthat enable stablecoin-based settlement; and JPMorgan Chasewhich is exploring deposit tokens, the report says.
According to the report, State Street earlier this year integrated members of its digital assets team into its overall business, seeking to strengthen the ties between digital assets and traditional finance.
When State Street reorganized its digital goods division in January, it was reported that most of the division’s employees had moved to other units of the company and that the company continues to provide clients with services and market infrastructure for digital assets.
In a statement to PYMNTS at the time, State Street said, “In an effort to offer clients better digital expertise and solutions, we have brought together our traditional custody and digital finance into a seamless, interoperable client experience. This approach is reducing fragmentation for clients and making the digital transition as easy as possible for investors.”
In March, it was reported that State Street was one of more than three dozen participants in a recently completed pilot project that aimed to reframe assumptions about the use of blockchain based applications within traditional finance.
The project, called Canton Network, brought together 15 asset managers, 13 banks, four custodians, three exchanges and a stablecoin issuer to explore the potential of an open, privacy-friendly blockchain network that enables real-time settlement and instant reconciliation between counterparty systems.
It has demonstrated that blockchain can be leveraged to simplify and synchronize financial applications, while meeting regulatory requirements for asset control, security, and data privacy.