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.

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