BNY Debuts Tokenized Deposits for Institutions and 'Digital Natives'
BNY Mellon, the world’s largest custodian bank, announced it will issue digital representations of customer deposits using its private, permissioned blockchain. These tokenized deposits will function as digital book entries, initially supporting collateral and margin-related activities. Clients will be able to withdraw funds traditionally, while balances remain recorded in BNY’s legacy systems for compliance. The initiative aims to improve settlement efficiency and liquidity by leveraging programmable, on-chain cash. This move reflects a broader trend among major financial institutions adopting digital asset technologies to enhance their services. BNY’s digital infrastructure initiative also includes a tokenized money-market fund with Goldman Sachs. The bank has $57.8 trillion in assets under custody and $2.1 trillion in assets under management. Industry participants, including crypto-native firms and financial giants like Anchorage Digital and Citadel Securities, praised the milestone, emphasizing tokenization’s growing importance in financial markets.
