State Street explores blockchain payments and stablecoin creation

State Street, one of the biggest asset management companies in the world, is exploring how to settle payments using blockchain and even thinking about creating their own stablecoin. They’re also looking at a deposit token that would represent customer deposits on the blockchain.

The Boston-based financial giant recently posted better-than-expected revenue and interest income. Now, they’re eyeing these new digital avenues to keep their edge.

An insider, who asked to stay anonymous, shared that State Street is seriously considering crypto. But the company hasn’t made any public statements about these plans yet.

Per this anonymous source, State Street is also looking at other ways to jump into blockchain payments. One thing on their radar is joining digital-cash consortiums.

They’re also exploring settlement options through their investment in Fnality, a blockchain payment startup making waves in the US. 

State Street has not responded to Cryptopolitan’s request for comments. The company remains a financial holding giant, with its main banking arm being State Street Bank and Trust Company.

At the end of 2023, State Street reported total assets of $297.26 billion and total deposits of $220.97 billion. They also boasted total shareholders’ equity of $23.80 billion. The company has about 46,000 employees all over the world.

State Street operates in over 100 countries. They manage $41.81 trillion of assets under custody and administration, and $4.13 trillion of assets under management.

This year, the company says it is laser-focused on three key areas. First, they aim to score big sales across their businesses. Second, they’re pushing for strategic changes in their Investment Services business. Third, they’re keeping a tight grip on productivity and cost management.

State Street’s economic analysis for 2024 is kind of mixed. The US economy did better than expected in 2023. But their Recession Likelihood Index suggests a recession could hit in 2024. 

Personal income data is sitting around levels usually seen at the start of a recession. Household spending is strong, but it’s mostly due to spending from excess savings, which are running low.

There’s an increase in interest in private markets investments. About 71% of surveyed institutional investors plan to boost their investments in infrastructure and private debt, said State Street.

They’re hunting for new strategies to tackle economic challenges, focusing on risk management.