State Street, a global custodian bank with $44.30 trillion of assets under management, chose Taurus, a crypto custodian and tokenization company, to provide digital asset services in response to the more relaxed regulatory environments in the United States. State Street said the bank's initial focus is to launch tokenized versions of traditional assets and will announce its first customer shortly. State Street has been "very vocal" about the need to amend SAB 121, which could force banks looking to hold cryptocurrencies to maintain large amounts of capital to compensate for the risk, according to Donna Milrod, chief product officer and head of digital asset solutions at State Street. In an interview, Milrod said: "While we started with tokenization, this is not where we end up, and we will also provide digital custody services once US regulations help us. We know how to be a custodian. We don't do it on the balance sheet, we do it off the balance sheet. They are not our assets." Lamine Brahimi, co-founder and managing partner of Switzerland's Taurus, pointed to the benefits of tokenisation, such as the ability to trade around the clock and optimise collateral management, while also echoing the need to improve regulatory environments in the US "I'm sure this partnership with State Street will send a positive signal to US financial marekt in general, which has been lagging behind Europe due to the impact of SAB 121," Brahimi said in an interview.