State Street, a venerable financial institution rooted in Boston, is contemplating the development of stablecoins and tokenized deposits as mechanisms for settling transactions on blockchain infrastructures, according to Bloomberg’s report on Wednesday, which referenced a source with knowledge of the proceedings.

The banking colossus is also evaluating potential involvement in “digital-cash consortium initiatives” and scrutinizing settlement methodologies via Fnality International, a fintech enterprise in which State Street holds investments.

This news emerges as State Street amplifies its footprint in the digital asset realm. State Street Global Advisors, the firm’s investment management division, recently forged an alliance with crypto investment firm Galaxy (GLXY) to engineer cryptocurrency trading products, as CoinDesk reported in late June, citing regulatory disclosures. Furthermore, The Information disclosed earlier last month that State Street was revitalizing its digital asset unit a mere six months post a team reduction, with intentions to offer cryptocurrency custody services.

Conventional finance powerhouses are increasingly engaging in the tokenization of traditional financial instruments or real-world assets (RWA), including bonds, funds, or credit, utilizing blockchain technology. This shift is driven by the quest for operational efficiencies such as expedited settlements, 24/7 transaction capabilities, and diminished administrative expenses. Stablecoins, digital currencies anchored to an external asset, predominantly the U.S. dollar, are widely employed as a tokenized form of cash.

BlackRock, an asset management behemoth now offering the largest spot bitcoin (BTC) exchange-traded fund, unveiled its inaugural tokenized money market fund on the Ethereum (ETH) network, integrating several decentralized finance (DeFi) protocols. Similarly, global banking giant JPMorgan developed its proprietary blockchain, Onyx, incorporating JPM Coin, a private digital rendition of the U.S. dollar.