State Street Tests Blockchain for Investment Tracking

State Street is working on a new blockchain project aimed at cataloging transactions tied to investment assets.

Sep 20, 2016 at 5:20 p.m. UTC
Updated Sep 11, 2021 at 12:30 p.m. UTC

State Street is working on a new blockchain project aimed at cataloging transactions tied to investment assets.

The Boston-based investment services firm is partnering with California-based blockchain startup PeerNova on the project. The prototype being developed will track funds used in investment transactions.

The firm suggested in statements that the trial could ultimately lead to a future product line focused on the tracking of assets using the technology.

Hu Liang, senior vice president for State Street’s Emerging Technology Center, said of the project:

"Together, we are developing technology that is designed to track the lineage of capital with precision and verifiability. While currently a trial, the potential to provide that level of detail more efficiently and more effectively can bring meaningful value to our clients."

The announcement marks State Street’s most notable initiative related to blockchain to date.

The bank is one of several dozen institutions working as part of the R3 distributed ledger consortium, and was one of the first banks to join the effort last year. Last November, State Street moved to highlight the blockchain experience of its new chief information officer.

State Street did not immediately respond to a request for comment.

Image via Wikimedia

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.