State Street Bank: Currently focused on tokenized bonds and money market funds, with no plans for a stablecoin project

ChainCatcher news, according to CoinDesk, State Street's Chief Product Officer Donna Milrod stated in an interview with Financial News that the bank is working on the tokenization of bond and money market funds, but currently has no plans to create stablecoins or tokenized deposits. However, Milrod said, "That doesn't mean we won't do it in the future; we just feel that there is no need to do it right now." Milrod mentioned that State Street has two ongoing tokenization projects focused on the tokenization of bonds and money market funds, which the company aims to complete "sometime next year." The goal is to establish tokenized collateral that allows traders to use it as margin without having to liquidate their holdings to raise cash.

Milrod stated, "Operational efficiency alone is not enough. It needs to have commercial value, and the industry is figuring out where that commercial value lies. Collateral tokens could help avoid or mitigate the 'liability-driven' crisis of 2022, when pension funds could use money market fund tokens to post margin instead of liquidating assets to raise cash."