State Street, the largest custodian in the world, has become the first external custodian to join JPMorgan's tokenized debt platform. This event highlights the growing interest among institutional investors in tokenized assets.
First Custodian on the Platform
State Street purchased $100 million in tokenized commercial debt issued by Oversea-Chinese Banking Corporation (OCBC) in the platform's inaugural transaction. JPMorgan offers its Digital Debt Service through its Kinexys unit, enabling institutions to issue, trade, and settle tokenized versions of government and corporate bonds.
Growing Interest in Tokenized Assets
The tokenization sector of real-world assets (RWAs) has grown by about 65% in 2025, reaching a market value above $26.4 billion, according to data from RWA.xyz. JPMorgan launched its Onyx blockchain unit in 2020 and rebranded it as Kinexys in 2024, focusing on tokenized RWAs.
Regulatory Issues of Tokenization
Citadel Securities expressed concerns about expanding the trading of tokenized securities, urging regulators to slow down this process. In a letter to the SEC, they highlighted the risks associated with insufficient regulation of tokenized products that could divert trading activity from public markets.
State Street's participation in the tokenization of debt securities marks an important step for traditional financial institutions in delving into digital assets, though regulatory questions remain vital for the further development of this sector.
