Custodian invests in widely backed collateral mobility platform and will also connect its agency securities lending business to HQLAx.
The new unit, State Street Digital, will be led by well-known securities services veteran Nadine Chakar, and seeks to address the industry-wide shift to a digital economy.
The funding round comes three months after Citi was appointed by BondEvalue as the custodian for the underlying bonds traded on its platform as tokenised assets.
Jens Hachmeister, head of issuer services and new digital markets at Clearstream, outlines the group's plans to be a core market infrastructure for digital securities.
Deutsche Bank and STACS were able to remodel and optimise the workflows involved to create a ‘bond in a box’ DLT platform.
The mandate advances Citi’s objective to evolve its securities services operating model and capabilities to cater for digitised products.
BNY Mellon said it plans to offer its new digital assets custody and administration services later this year.
The project will explore a range of technological and practical feasibilities of digital assets to form the foundation of an integrated platform.
The tokenisation of bonds will provide investor access to harder-to-reach securities such as emerging and frontier market debt.
Clearstream is planning to use its involvements in recent DLT projects as a steppingstone to developing its own digitised CSD.