State Street Joins J.P. Morgan’s Blockchain Debt Service With $100M Anchor Deal

TLDR:

• State Street became the first third-party custodian on J.P. Morgan’s Digital Debt Service with a $100M commercial paper deal.
• The launch used OCBC’s $100M commercial paper, settled on-chain through J.P. Morgan’s Kinexys tokenization platform.
• The service enables T+0 settlement, smart contract lifecycle management, and digital wallet custody for institutional clients.
• State Street Investment Management acted as the anchor investor, integrating custody with front, middle, and back-office services.

The shift toward blockchain-based financial infrastructure took another step forward this week. 

State Street has officially joined J.P. Morgan’s Digital Debt Service as its first outside custodian. The move puts tokenized debt securities into custody under one of the largest institutional names in finance. A $100 million commercial paper transaction served as the launchpad. 

The transaction was issued by Oversea-Chinese Banking Corporation (OCBC) and executed on J.P. Morgan’s Kinexys platform, according to a press release.

State Street Brings Custody to Blockchain Debt Securities

The deal positioned State Street Investment Management as the anchor investor. It purchased the inaugural $100 million commercial paper issued on the platform. J.P. Morgan Securities acted as the placement agent, finalizing the launch.

Through the new setup, the debt record sits inside a digital wallet maintained through J.P. Morgan’s Digital Debt Service. That system allows issuance, delivery-versus-payment settlement, and automated lifecycle servicing. Precision-timed settlement is available with T+0 execution, which reduces counterparty exposure.

Executives at State Street described the step as part of its larger digital strategy. 

The custodian now manages digital wallets on-chain, aiming for interoperability across blockchain networks. Its investment management arm ties directly into the system, showing integration from front office to back office.

The platform itself was designed to modernize short-term debt markets. Smart contracts automatically handle redemptions, payments, and corporate actions. With State Street acting as custodian, clients gain exposure to blockchain-based debt instruments while keeping traditional compliance safeguards.

J.P. Morgan Expands Digital Debt Service

J.P. Morgan built the Digital Debt Service on its Kinexys multi-asset tokenization framework. The platform was developed to support the issuance and settlement of tokenized securities using digital cash. The bank’s Markets Digital Assets team called the launch a further step in institutional adoption.

Emma Lovett, Credit Lead at J.P. Morgan, said the project shows how blockchain can cut inefficiencies across capital markets. State Street’s involvement marked the first external custodian to connect directly with the platform.

For State Street clients, the benefit comes in the form of seamless custody that aligns with existing servicing models. The firm highlighted the ability to integrate blockchain-based debt without altering how institutions already manage assets.

The commercial paper transaction now stands as a proof point. By combining custody, investment, and operational support, both firms showcased the ability to modernize debt securities.

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