State Street Bank partners with JPMorgan to layout the RWA track! The custody giant anchors $100 million in tokenized commercial paper, with the market potentially exceeding $2 trillion by 2030.

State Street, the custodian giant managing $49 trillion in assets, has officially joined JPMorgan's Blockchain platform Digital Debt Service, becoming its first third-party tokenized asset custodian. The bank's first transaction anchors a $100 million tokenized commercial paper issued by OCBC Bank of Singapore, marking a significant step as traditional financial giants accelerate their embrace of the Real World Assets (RWA) tokenization wave. According to McKinsey and Ripple's predictions, the tokenized asset market size is expected to reach $2-19 trillion between 2030 and 2033.

Giants Join Forces: State Street Unlocks New Capabilities in Blockchain Custody

State Street Bank, as one of the largest custodians in the world, has provided custodial services for tokenized debt securities for clients for the first time by accessing the JPMorgan Blockchain platform, without changing its traditional service model. The bank's Chief Product Officer, Donna Milrod, stated that this move is "an important step in the digital strategy," laying the foundation for cross-blockchain network interoperability by managing on-chain digital wallets.

First Transaction: $100 million commercial paper tokenization by OCBC Bank

The $100 million tokenized commercial paper issued by OCBC Bank in Singapore became the platform's first transaction, purchased by State Street Global Advisors, with JPMorgan Securities acting as the placement agent. The transaction utilizes a delivery versus payment (DvP) settlement model, supports same-day (T+0) settlement, and automatically processes corporate actions such as interest payments and redemptions through smart contracts, significantly enhancing efficiency and reducing management costs.

The eve of RWA explosion: trillion-level market predictions show divergence

The tokenized asset market is expected to experience explosive growth, but institutional predictions show significant differences:

• McKinsey: $2 trillion by 2030
• Ripple and Boston Consulting Group (BCG): Approaching $19 trillion by 2033

Traditional financial institutions are accelerating the process of digitizing physical assets such as bonds, funds, and credit onto the Blockchain to leverage 24-hour settlement, automated processes, and other native advantages of the Blockchain.

Technical Architecture: Direct Connection of Digital Wallets and Automation of Smart Contracts

State Street Bank manages client positions through a digital wallet that directly connects to JP Morgan's system, eliminating manual steps in settlement and record-keeping. This infrastructure supports:

• DvP settlement (optional T+0 model)
• Smart contracts automatically execute interest payments/redemptions
• Underlying preparation for cross-chain interoperability

In October last year, State Street announced a partnership with Swiss tokenization company Taurus to experiment with the tokenization of bonds and money market funds.

Conclusion

The collaboration between State Street Bank and JPMorgan marks a systematic embrace of Blockchain technology by traditional financial infrastructure. RWA tokenization has moved from the experimental phase to large-scale deployment, and the entry of custodial giants provides a key endorsement for addressing asset security and compliance. Although there are discrepancies in the trillion-dollar market forecasts, the maturity of institutional-grade digital asset custody solutions will undoubtedly accelerate the on-chain process for traditional assets, bringing a new wave of institutionalization to the cryptocurrency market. Investors should pay attention to the progress of tokenization of government bonds, private credit, and other low-risk assets on-chain, as these areas may become the core tracks for the next wave of growth.