Key Takeaways
- • Kim Hochfeld, global head of digital and cash at State Street Investment Management, called collateral mobility a "killer app" for tokenization and said using tokenized money market funds as collateral is "the holy grail," speaking at Digital Assets Week in London on 6 October 2026.
- • State Street's 2026 Digital Assets Study, covering 300 asset managers, asset owners and wealth managers, found 51% of respondents expect digital assets to become mainstream within five years, up from 42% in 2025 and 11% in 2024.
- • 35% of surveyed firms already manage or distribute digital assets, and another 28% have the provider relationships and infrastructure in place to do so if client demand arises.
- • Market participants cited real-time, portable collateral movement and improved balance sheet efficiency as core benefits, but said legal and regulatory certainty is required before adoption can scale.
- • State Street Investment Management and Galaxy Asset Management launched SWEEP, a tokenized private liquidity fund enabling 24/7 onchain cash management via stablecoin, in May 2026.
Summary
Market participants identified improved collateral mobility as a central benefit of tokenization, while cautioning that legal and regulatory certainty must be established before adoption can scale. Speaking on a panel at Digital Assets Week in London on 6 October 2026, Kim Hochfeld, global head of digital and cash at State Street Investment Management, described collateral mobility as a "killer app" for tokenization. She argued that tokenized money market funds used as collateral represent the "holy grail" of the sector. According to Hochfeld, tokenization makes collateral mobile and portable, enables real-time movement in place of the slow, intermediary-heavy processes of traditional finance, and improves balance sheet efficiency.
State Street released findings from its 2026 Digital Assets Study on the same day. The global survey of 300 asset managers, asset owners and wealth managers showed growing institutional conviction: 51% of respondents expect digital assets to become mainstream within five years, compared with 42% in 2025 and 11% in 2024. The study also found that 35% of respondents already manage or distribute digital assets, and a further 28% have the provider relationships and infrastructure in place to do so if client demand emerges.
Angus Fletcher, head of digital asset solutions at State Street, said in a statement: "Investors are spending less time debating the technology and more time focused on infrastructure, operations, regulation and risk. That tells us the market is maturing."
The commentary follows the May 2026 launch of SWEEP, the State Street Galaxy Onchain Liquidity Sweep Fund, a tokenized private liquidity fund developed by State State Investment Management and Galaxy Asset Management, an affiliate of digital asset fund manager Galaxy. The fund is designed to enable 24/7 onchain cash management via stablecoin, subject to the availability of stablecoin in its portfolio.
State Street released findings from its 2026 Digital Assets Study on the same day. The global survey of 300 asset managers, asset owners and wealth managers showed growing institutional conviction: 51% of respondents expect digital assets to become mainstream within five years, compared with 42% in 2025 and 11% in 2024. The study also found that 35% of respondents already manage or distribute digital assets, and a further 28% have the provider relationships and infrastructure in place to do so if client demand emerges.
Angus Fletcher, head of digital asset solutions at State Street, said in a statement: "Investors are spending less time debating the technology and more time focused on infrastructure, operations, regulation and risk. That tells us the market is maturing."
The commentary follows the May 2026 launch of SWEEP, the State Street Galaxy Onchain Liquidity Sweep Fund, a tokenized private liquidity fund developed by State State Investment Management and Galaxy Asset Management, an affiliate of digital asset fund manager Galaxy. The fund is designed to enable 24/7 onchain cash management via stablecoin, subject to the availability of stablecoin in its portfolio.
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