State Street successfully executes first digital debt deal on JPMorgan’s blockchain-based platform

State Street successfully executes first digital debt deal on JPMorgan’s blockchain-based platform, marking its debut as the first third‑party custodian on the Digital Debt Service (DDS). The company announced the milestone Thursday.

The news underlines a $100 million commercial paper transaction that State Street Investment Management executed, showcasing the full on‑chain life cycle from issuance to settlement. This marks the first time a major custodian has moved beyond experimentation into everyday use of blockchain‑enabled fixed‑income markets, opening the door for other institutional players.

State Street has highlighted that this transaction proves the feasibility of a seamless front‑to‑back management framework for debt securities on the blockchain. The achievement signals a shift from trial to production for top-tier asset managers.

“By actively engaging with JPMorgan’s Digital Debt Service, we are advancing our ability to deliver a fully integrated front-, middle-, and back‑office solution built on blockchain technology,” said Donna Milrod, Chief Product Officer at State Street. “This launch represents a meaningful step toward a digital strategy that manages an on‑chain wallet and lays the groundwork for cross‑chain interoperability.”

Integrating custody with the DDS empowers State Street to offer blockchain‑based debt instruments while maintaining the high service standards its clients expect. Smart contracts enable precisely timed settlement, and end‑to‑end workflow streamlining reduces manual effort across the value chain.

“The collaboration with JPMorgan’s Digital Debt Service marks a pivotal transformation for institutional asset management,” stated Pia McCusker, Global Head of Cash Management for State Street Investment Management.

JPMorgan’s Digital Debt Service is founded on the Onyx Digital Assets platform, designed to overhaul traditional bond markets by slashing operational costs, boosting efficiency, and minimizing risks linked to manual processes and fragmented ledgers. The platform supports a broad spectrum of participants, from issuers and investors to broker‑dealers and custodians.

Emma Lovett, Credit Lead for JPMorgan’s Markets Digital Assets Team, stressed that the DDS rollout highlights the growing global adoption of digital assets and represents a critical step toward integrating blockchain efficiencies into capital markets and bond lifecycle management.

Looking ahead, State Street intends to launch a digital‑asset custody unit, aimed at delivering custody and transfer‑agency services for tokenized assets—pending regulatory approval. The move follows reports of the firm’s plans to cement its role in the emerging crypto‑asset ecosystem.

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