New York Mellon Bank Launches Tokenized Deposit

BlockBeats News, January 9th, according to Bloomberg, Bank of New York Mellon (BNY) has launched a tokenized deposit service that allows customers to transfer funds through a blockchain network. The tokenized deposit represents BNY customers' deposits in a bank account on the blockchain, which can be used for collateral and margin trading, and enables 24/7 operation to expedite payment settlement. 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 $57.8 trillion in assets under management, making it another global major bank delving into the digital asset space after JPMorgan Chase and HSBC. ICE plans to support tokenized deposits in its clearinghouse to complement its 24-hour transaction settlement preparations. Furthermore, the service supports programmable transactions, allowing automatic fund transfers upon meeting predefined conditions (e.g., loan repayment obligations).