BNY Mellon Launches Tokenized Deposit Platform for Institutions

BNY Mellon’s Blockchain Platform Enhances Institutional Settlements

Major institutional figures have responded positively to the move. Elizabeth King from ICE highlighted the potential for enhanced settlement efficiency and programmability within the banking system. Carlos Domingo of Securitize commended BNY’s role in establishing regulated systems for on-chain cash and assets.

Integrating Traditional Finance with Next-Gen Digital Infrastructure

Did you know? The convergence of traditional banking with blockchain has seen consistent growth, similar to the rise of stablecoin use in institutional settings, highlighting the financial sector’s shift towards digital solutions.

BNY Mellon’s venture into tokenized deposits offers a bridge between traditional finance and blockchain technology. Historically, similar efforts have focused on improving infrastructure for institutional settlement and collateral management, without immediate effects on public crypto markets.

The initiative is expected to strengthen institutional workflows and liquidity management, according to experts. This fits a broader trend of banks leveraging private blockchains to streamline financial services, resulting in tangible benefits for participants within closed networks.

Tokenized deposits aim to bring real programmability and 24/7 settlement efficiency into the core of the banking system. We’re pleased to be working with BNY on this capability as it comes to market and see it as a pragmatic step toward always-on markets that institutions can engage with today. — Elizabeth King, Global Head of Clearing and Chief Regulatory Officer, ICE