State Street has become the first third-party custodian for tokenized assets on J.P. Morgan's blockchain platform, Digital Debt Service, significantly advancing its digital strategy. The inaugural transaction was a $100 million issuance of tokenized commercial paper by the Oversea-Chinese Banking Corporation (OCBC), a Singapore-based bank. Tokenization is gaining traction among global banks for its operational advantages, including faster settlements and reduced administrative costs. The market for tokenized assets is projected to grow, with estimates ranging from $2 trillion by 2030 to almost $19 trillion by 2033. This new arrangement allows State Street to manage client holdings in a digital wallet connected to J.P. Morgan's system, streamlining recordkeeping and settlement processes. Donna Milrod, State Street's chief product officer, emphasized the importance of this development for interoperability across blockchain networks and the firm's broader digital asset initiatives.

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