State Street (NYSE: STT) is currently examining various options for settling payments on blockchain, according to a report from Bloomberg.
State Street, which is focused on the financial services and banking sector, is assessing if it should introduce its own stablecoin, issuing its own deposit token, bringing together digital-cash consortium initiatives, and implementing settlement options with assistance from blockchain payment Fintech Fnality, in which it maintains an investment, Bloomberg revealed on July 17, 2024 while citing a source familiar with the matter.
State Street has not yet provided any detailed insights about this development at the time of writing.
With these initiatives, State Street will join other projects that are looking into the feasibility of blockchain / DLT-based settlement.
These Fintechs reportedly include PayPal, which has launched its own stablecoin; payments giants Visa and Mastercard, which now support stablecoin-powered settlement; as well as JPMorgan Chase, which is working wiyh deposit tokens.
Recently, State Street integrated its professional members that are sharply focused on crypto assets into its business operations, aiming for closer cooperation between digital assets and traditional finance or TradFi.
After State Street revamped its digital assets unit at the start of the year, it was revealed that most of the unit’s workers shifted to other departments of the firm and that the business continues to offer customers with services and key infrastructure for crypto-assets.
As previously reported by PYMNTS, State Street shared: “We have brought together our traditional custody and digital finance in a seamless interoperable customer experience. This approach is reducing fragmentation for clients ….”
In March of this year, it was revealed that State Street was one of a number of key players that is reportedly looking at a number of options for settling payments via blockchain.
The initiative, known as the Canton Network, brought together various asset managers, different banks, major custodians, several exchanges and a stablecoin provider to look into the feasibility of a privacy-focused open blockchain network enabling real-time settlement and reconciliation via counterparty platforms.
It confirmed that blockchain or distributed ledger tech may be harnessed to streamline and optimize financial apps while complying with regulatory asset control, security as well as data privacy guidelines.