TechFlow news, on August 20, according to CoinDesk, global custodian State Street Bank has selected cryptocurrency custody and tokenization firm Taurus to provide digital asset services, anticipating improvements in the U.S. regulatory environment. Due to restrictions imposed by the SEC's SAB 121 guidance on banks holding customer crypto assets, State Street will initially focus on tokenizing traditional assets rather than crypto custody. The bank plans to announce its first client shortly after launching tokenization services.
Donna Milrod, State Street’s Chief Product Officer, said that while the current focus is on tokenization, the bank aims to offer digital custody services in the future as U.S. regulations improve. Taurus co-founder Lamine Brahimi highlighted the benefits of tokenization, such as 24/7 trading and optimized collateral management, and noted that SAB 121 is causing U.S. financial markets to lag behind Europe. State Street has a long history in blockchain technology and digital assets, and recently collaborated with crypto custody firm Copper.
