Bank of New York Mellon is upgrading its deposits to blockchain.
summary
The new service converts traditional bank deposits into on-chain tokens representing the cash customers already hold in BNY. In layman’s terms, this is regular bank money dressed up for the blockchain era. The storage giant said the move is part of its push to achieve 24/7 operations, a goal increasingly shared by a global market that no longer sleeps.
According to Bloomberg, the company plans to launch a tokenized deposit service that will allow large institutional investors to move funds on digital rails.
Customers and stakeholders include heavyweights such as Intercontinental Exchange, Citadel Securities, DRW, Ripple Inc.’s flagship brokerage Ripple Prime, asset manager Baillie Gifford, and stablecoin issuer Circle, making for an eclectic guest list that signals the mainstreaming of blockchain.
Tokenized deposits could play a key role in driving the widespread tokenization of securities such as stocks and bonds, serving as a payment instrument that actually makes these transactions work in real-time. Carolyn Weinberg, BNY’s chief product and innovation officer, said the goal is to bridge trusted banking infrastructure with new digital rails without requiring financial institutions to take drastic action.
BNY now joins JPMorgan, which has rolled out JPM Coin, and HSBC, which plans to expand its own tokenized deposit offering this year. The move, which comes on the heels of the newly passed Genius Act, highlights the simple reality that banks aren’t trying to replace money, they’re just upgrading the way money moves.
