BNY Mellon Launches Tokenized Deposits

Foresight News reports, according to Bloomberg, that Bank of New York Mellon (BNY) has launched a tokenized deposit service, supporting clients in transferring funds via blockchain networks. The tokenized deposit is an on-chain representation of the deposits held by BNY clients in their bank accounts, which can be used as collateral and for margin trading, and operates 24/7 to accelerate payment speeds. Currently, participating institutions include Intercontinental Exchange (ICE), Citadel Securities, DRW Holdings, Ripple Prime, Baillie Gifford, and Circle.

BNY currently manages or administers assets totaling $57.8 trillion. This move makes it the latest major global bank to delve into digital assets, following JPMorgan and HSBC. ICE plans to support tokenized deposits within its clearinghouse to facilitate its 24-hour trading settlement. Additionally, the service supports programmable trading, allowing automatic fund transfers when predefined conditions are met (such as repaying loan obligations).