State Street Bank: Working on tokenized bonds and money market funds, no plans for stablecoin projects yet

BlockBeats news, October 9, according to CoinDesk, State Street Bank Chief Product Officer Donna Milrod said in an interview with Financial News that the bank is working on the tokenization of bonds and money market funds, but there are currently no plans to create stablecoins or tokenized deposits. However, Milrod said: "It doesn't mean that we won't do it in the future, but we don't think it's necessary to do it now." Milrod said that State Street Bank has two ongoing tokenization projects, focusing on the tokenization of bonds and money market funds, which will allow the company to complete it "in part of next year." The goal is to establish tokenized collateral that traders can use as margin without liquidating their holdings to cash out.

Milrod said: "Operational efficiency alone is not enough. It needs to have commercial value, and the industry is figuring out where the commercial value is. Collateralized tokens may help avoid or mitigate the "liability-driven" crisis in 2022, when pension funds can use money market fund tokens to add margin instead of liquidating assets to raise cash. ”