BNY Mellon launches tokenized deposits

Foresight News reported, citing Bloomberg, that BNY Mellon has launched a tokenized deposit service, enabling clients to transfer funds via blockchain networks. These tokenized deposits represent the on-chain form of deposits held by BNY clients in their bank accounts, and can be used for collateral and margin trading, as well as enabling 24/7 operations to accelerate payment speeds. Institutions currently participating in this service include Intercontinental Exchange (ICE), Citadel Securities, DRW Holdings, Ripple Prime, Baillie Gifford, and Circle.

BNY currently manages or administers assets totaling $57.8 trillion, making it the latest global banking giant to deepen its involvement in the digital asset space, following JPMorgan and HSBC. ICE plans to support tokenized deposits in its clearinghouse to prepare for 24/7 trade settlement. In addition, the service supports programmable transactions, allowing for automatic fund transfers when predefined conditions—such as repayment of loan obligations—are met.