State Street Becomes First Third-Party Custodian to Launch on J.P. Morgan’s Digital Debt Service, Bringing Blockchain-Based Debt Securities Custody to Institutional Clients

• State Street brings custody capabilities to J.P. Morgan’s Digital Debt Service, with State Street Investment Management participating as the anchor investor in the platform’s inaugural commercial paper transaction by Oversea-Chinese Banking Corporation (OCBC). J.P. Morgan Securities LLC acted as placement agent.
• Integration with the Digital Debt Service enables seamless custody of tokenized debt securities issued, settled, and serviced using blockchain technology, and digital cash settlement with fully automated technical connectivity and no manual intervention required.
• In this solution, the depository record of the debt securities held by State Street on behalf of its clients is maintained in a digital wallet through J.P. Morgan’s  Digital Debt Service, which is built on J.P. Morgan’s multi-asset tokenization platform, Kinexys Digital Assets. The Debt Service facilitates the issuance, delivery-versus-payment settlement, and lifecycle management of debt securities.

BOSTON--(BUSINESS WIRE)--State Street Corporation (NYSE: STT) announced today that it has become the first third-party custodian to launch on J.P. Morgan’s Digital Debt Service, marking a significant milestone in the institutional adoption of blockchain-based debt securities. This strategic collaboration enables State Street to offer custody services for debt securities that are issued, settled and serviced using blockchain technology, delivering a seamless and efficient client experience. The service is currently available only in the U.S.

This milestone was marked by the successful purchase of a $100M commercial paper transaction with State Street Investment Management, the asset management business of State Street Corporation. The transaction demonstrates the Digital Debt Service’s ability to modernize short-term debt markets by enabling precision-timed settlement, with T+0 settlement available as an option. As an onboarded custodian to J.P. Morgan’s Digital Debt Service, State Street can now offer clients access to blockchain-based debt instruments while maintaining the security and regulatory compliance standards expected from traditional custody services.

The transaction also demonstrates the full integration of State Street’s capabilities across the investment lifecycle, with State Street Investment Management serving as the front-office investor and State Street providing middle and back office functionality.

“Through our direct participation in J.P. Morgan’s Digital Debt Service, we are advancing our ability to deliver a fully integrated front-, middle-, and back-office solution built on blockchain technology,” said Donna Milrod, Chief Product Officer at State Street. “This launch reflects a meaningful step forward in our digital strategy — where we manage a digital wallet on-chain and lay the groundwork for interoperability across blockchain networks. It’s also a clear demonstration of our ‘One State Street’ approach, combining institutional-grade infrastructure with emerging digital capabilities to meet the evolving needs of our clients.”

State Street has been at the forefront of institutional digital asset adoption with a goal of providing clients an integrated business and operating model that supports the digital investment lifecycle. The integration with J.P. Morgan allows State Street to offer clients seamless custody experience that incorporates blockchain-based debt instruments without altering their established servicing model, including:

• Precision-Timed Settlement: Settlement infrastructure enables precision and reliability with reduced counterparty risk
• Streamlined Lifecycle Management: Smart contracts streamline payments, redemptions, and other corporate actions automatically

“This partnership with J.P. Morgan’s Digital Debt Service represents a transformative movement for institutional asset management,” said Pia McCusker, global head of Cash Management for State Street Investment Management. “Our successful investment in the first commercial paper transaction in blockchain format for our Short Term Investment Fund demonstrates the tangible benefits this technology brings to our clients and positions them at the forefront of the digital transformation in fixed income markets.”

“Digital asset adoption and investment continues to increase across financial markets globally. As first movers in this space, J.P. Morgan’s Digital Debt Service application is a significant advancement in the evolution of digital issuances, providing clients with the opportunity to explore the use of blockchain in unlocking ecosystem-wide efficiencies across capital markets and the lifecycle of bond,” said Emma Lovett, Credit Lead for the Markets Digital Assets Team, J.P. Morgan. “State Street’s participation as a custodian on our application demonstrates another meaningful step forward in the institutional adoption of blockchain-based debt securities.”

About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $49.0 trillion in assets under custody and/or administration and $5.1 trillion* in assets under management as of June 30, 2025, State Street operates globally in more than 100 geographic markets and employs approximately 52,000 worldwide. For more information, visit State Street's website at www.statestreet.com.
*Assets under management as of June 30, 2025 includes approximately $116 billion of assets with respect to SPDR^® products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Investment Management are affiliated.