Crypto Firm Taurus and State Street Collaborate To Turn Traditional Assets Into Tokens

State Street and Cryptocurrency company Taurus have teamed up to expand the former’s digital asset services. The partnership will include the development of tradable tokens from real-world assets.

The crypto industry is increasingly gaining more recognition in the mainstream financial space. This gradual integration has led to the development of several products and the growth of exchange-traded funds (ETFs) and futures. It has also drawn more institutional interest as every party wants to join the crypto trend.

More Institutions Are Embracing Digital Assets

More institutions are looking for safer ways to diversify their portfolios and hedge against inflation, leading to more investments in the crypto industry. State Street is seeing an opportunity, which has spurred the partnership to turn traditional assets into tokens.

The partnership will enable State Street to manage clients’ crypto assets and help in the generation of tokenized assets. They will use blockchain technology to convert traditional asset ownership rights into digital tokens.

Proponents argue that the process improves security and transparency, making it easier fro holders to trade assets. State Street is not the only firm considering a conversion of traditional assets into tokens. BlackRock already has a system that converts tokenized funds into Ethereum blockchain, providing S dollar yields to investors.

Chief Product Officer of State Street, Donna Milrod, commented about the partnership. She stated that the new feature will benefit asset management clients who want assistance to tokenize their funds. Donna added that the integration of traditional assets into digital assets is growing in the industry and many institutions are now interested in the process.

The collaboration also means State Street will assist clients who want to convert their physical assets into digital assets. The firm will also help the clients to manage their digital asset portfolios better.

Wall Street Giants Show More Interests In Spot Bitcoin ETFs

While details about the launch of the service are still sketchy, the companies involved say they service will be available soon. Apart from the conversion service, State Street stated that it will address the issue of custodianship of crypto assets. The firm believes the blockchain space will expand when the mainstream feel safe about keeping their digital assets in secure custody.

The digital assets space has seen more interest from institutional investors as more clients demand investments in digital assets. Wall Street giants like Morgan Stanley and Goldman Sachs has shown interests in the market. \

They have invested more than $600 million in spot Bitcoin ETFs this year. Financial advisers, pension funds, and hedge funds are also exploring digital assets investment products to take advantage of the growing market.