U.S. financial services company State Street (NYSE: $STT) plans to launch a tokenized fund by the end of this year.
The move by State Street marks another step by a major financial services firm to bring traditional fund infrastructure onchain.
The tokenized fund aims to extend the State Street’s existing fund administration, custody, and transfer agency capabilities.
• Ripple, The Company Behind XRP, Is Valued At $50 Billion
Tokenized funds are investment vehicles whose ownership records and operating rails are represented on blockchain networks rather than older back-office systems.
According to a written statement, State Street’s new product will run through its Digital Asset Platform, allowing it to support the full lifecycle of tokenized fund issuance and custody.
The tokenized fund will be operated out of Luxembourg rather than the U.S. This is because of its funds ecosystem and the legal frameworks supporting digitally native fund structures.
State Street is one of the world’s biggest financial services firms for institutional investors. As of the end of March this year, it had $5.6 trillion U.S. of assets under management (AUM).
STT stock has risen 77% over the last 12 months to trade at $154.59 U.S. per share.