State Street Partners with Taurus for Tokenization
State Street is teaming up with Taurus to enter the digital asset space, starting with tokenization. Full crypto custody will follow once U.S. regulations ease up.
Key points:
- Partnership with Taurus: State Street partners with Swiss-based crypto firm Taurus to begin tokenizing traditional assets.
- Regulatory challenges: Due to SEC’s SAB 121 regulation, the financial titan is focusing on tokenization first, delaying full crypto custody services.
- Future plans: The custody gigant plans to offer digital asset custody services as soon as U.S. regulations allow.
- Taurus’ role: Taurus will provide expertise in tokenization and 24/7 trading, aiming to optimize collateral management.
Tokenization Takes the Spotlight:
State Street, one of the world’s largest custody banks with $44.3 trillion in assets, is diving into the world of digital assets through a partnership with Swiss crypto specialist Taurus.
However, due to the regulatory hurdles posed by the SEC’s SAB 121, which forces banks to hold significant capital reserves for crypto custody, they will begin with tokenizing traditional assets instead of jumping straight into crypto custody.
The first tokenization client will be announced soon, there are big plans to roll out full crypto custody services once the U.S. regulatory environment improves.
Donna Milrod, State Street’s chief product officer, reassures that they are ready to move forward once regulations ease up. Taurus, with its expertise in tokenization and 24/7 trading, will assist in making this digital asset transition smoother.
They’ve been involved in blockchain before, partnering with crypto custody firm Copper. This latest move highlights their ongoing dedication to digital assets, with tokenization being just the beginning of a bigger plan.
