State Street has become the first third-party custodian to onboard JP Morgan’s Digital Debt Service, marking a significant step in the institutional adoption of blockchain-based debt instruments.
The collaboration enables State Street to provide custody for tokenised debt securities issued, settled and serviced via JP Morgan’s blockchain infrastructure. The service, currently available in the US, offers fully automated digital cash settlement and lifecycle management with no manual intervention.
The milestone was marked by a $100m commercial paper transaction issued by Oversea-Chinese Banking Corporation (OCBC), with State Street Investment Management acting as anchor investor and JP Morgan Securities LLC as placement agent. The transaction demonstrates the platform’s capacity to modernise short-term debt markets, offering precision-timed settlement and T+0 functionality.
Emma Lovett, credit lead for JP Morgan’s Markets Digital Assets Team, described the partnership as “another meaningful step forward in the institutional adoption of blockchain-based debt securities.”
Donna Milrod, chief product officer at State Street, said the bank’s direct participation in JP Morgan’s Digital Debt Service, advanced its “ability to deliver a fully integrated front-, middle-, and back-office solution built on blockchain technology. This launch reflects a meaningful step forward in our digital strategy”.
The integration leverages JP Morgan’s Kinexys Digital Assets platform, with State Street maintaining depository records in a digital wallet on behalf of clients. Smart contracts automate payments, redemptions and corporate actions, streamlining operational processes while preserving regulatory rigour.
Pia McCusker, global head of cash management at State Street Investment Management, added: “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.”
Emma Lovett will appear at Capital Pioneer’s Digital Asset Summit in London on October 6. To find out more, head to our dedicated website.
