According to CoinDesk, in anticipation of a more favorable regulatory environment in the United States, global custodian bank State Street has chosen to collaborate with cryptocurrency custodian and tokenization company Taurus to provide digital asset services.

State Street Bank stated that its initial goal is to launch a tokenized version of traditional assets and announce its first customer soon. The bank also plans to provide digital asset custody services after the regulatory environment in the United States improves.

Banks in the United States have been facing a major obstacle, namely the "Staff Accounting Bulletin 121" (SAB 121) proposed by the Securities and Exchange Commission (SEC), which imposes restrictions on companies seeking to hold clients' encrypted assets.

Donna Milrod, Product Director and Head of Digital Asset Solutions at State Street Bank, stated that the company has been "strongly calling for" the necessity of revising SAB 121 rules, which could force banks seeking to hold cryptocurrencies to maintain heavy capital to mitigate risks. Milrod said in an interview:

We started with tokenization, but that's not our end. Once the regulations in the United States improve, we will also provide digital custody services. We know how to act as a custodian, we won't put those assets on our balance sheet, we manage them as off balance sheet assets, they're not our assets