BNY Mellon weighs tokenized deposits to address legacy payment constraints: report
Quick Take BNY Mellon has reportedly been exploring tokenized deposits to support blockchain payments, as part of a pivot into instant, real-time, and cross-border rails.
The Bank of New York Mellon, the world’s largest custodian by assets under custody, has been assessing tokenized deposits that would allow clients to make payments over blockchain rails as financial intermediaries foray into onchain settlement.
Carl Slabicki, executive platform owner for Treasury Services at the bank, said the move is part of a broader modernization push across real-time, instant, and cross-border payments, Bloomberg reported .
Tokenized deposits are bank-issued, transferable digital coins that represent a claim on commercial bank money. BNY’s treasury services unit processes roughly $2.5 trillion in payments a day and oversees about $55.8 trillion in assets under custody and/or administration. By moving on decentralized ledgers, they can settle transactions near-instantly and operate 24/7, a contrast with legacy correspondent networks.
The effort lands amid a wave of deposit-token pilots by global banks. JPMorgan launched a proof-of-concept for JPMD, a USD deposit token running on Base, in June, while HSBC recently rolled out a tokenized deposit service for corporate clients to facilitate cross-border currency transactions. Messaging network Swift has also been building a blockchain-based shared ledger prototype for real-time cross-border payments.
BNY has been active on digital-asset infrastructure this year. In July, it partnered with Goldman Sachs to maintain tokenized records of money market fund ownership. The step was aimed at improving collateral mobility and settlement.
Today’s news regarding the exploration of deposit tokens points to a complementary path, where onchain cash can move alongside tokenized assets. While timelines were not disclosed, Slabicki suggested tokenized deposits could help banks overcome “legacy technology constraints,” first within their own ecosystems and “eventually” across the broader market as standards mature.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Exchanges Call on SEC: Deny Exemptions to Maintain Fairness in the Market
- WFE warns SEC against broad crypto exemptions for tokenized stocks, citing risks to investor protections and market integrity. - Tokenized stocks lack dividend rights, voting access, and custody frameworks, creating "mimicked products" with weaker safeguards. - SEC's sandbox-style exemptions risk regulatory arbitrage, allowing crypto platforms to bypass rules enforced on traditional exchanges. - Global bodies like IOSCO warn tokenization amplifies data integrity and custody risks, urging unified standard
Decentralized AI Network Cocoon Takes on Centralized Titans with a Privacy-Centric Approach
- Telegram founder Pavel Durov launched Cocoon, a TON-based decentralized AI network enabling GPU owners to earn cryptocurrency by processing private AI requests. - The platform challenges centralized providers like Amazon and Microsoft by using Trusted Execution Environments (TEEs) to ensure secure, verifiable model execution with user data privacy. - Cocoon connects GPU providers with developers for confidential tasks, reducing reliance on costly intermediaries while aligning with ethical AI principles t
Ethereum News Update: Fusaka Upgrade Signals New Era of Unified Scaling for Ethereum
- Ethereum's Fusaka upgrade (Dec 3, 2025) introduces PeerDAS and BPO forks to enhance scalability via reduced data verification costs and incremental rollup capacity expansion. - Gas limit raised to 60M through "Pump The Gas" initiative lowers fees and congestion, while L2 data costs could drop 40-60% to boost developer adoption. - EIP-7917/7951 improves security and UX with deterministic finality and P-256 signatures, aligning Ethereum with fintech standards while reducing node storage demands. - Upgrade
UAE's regulatory initiatives set the stage for a surge in institutional DeFi adoption
- DWF Labs commits $75M to DeFi projects enhancing institutional-grade infrastructure across Ethereum , BNB Chain, and Solana . - UAE's new Central Bank Law mandates licensing for DeFi protocols, balancing innovation with regulatory oversight and consumer protection. - Doma Protocol and ORA introduce liquid domain trading and cash-flow-driven models, expanding DeFi's functional scope beyond speculative tokenomics. - Institutional adoption faces hurdles including regulatory uncertainty, smart contract risks
Trending news
MoreCrypto prices
More
