BNY Mellon Launches Tokenized Deposits for Institutional Digital Cash Infrastructure

TLDR:

• BNY Mellon creates on-chain mirror of client deposits on permissioned blockchain for institutional use cases
• Major firms including Citadel Securities, ICE, and Circle participate in tokenized deposit program launch
• Platform initially targets collateral and margin workflows with plans for real-time cash movement capabilities
• Tokenized deposits maintain traditional banking safeguards while enabling 24/7 settlement and liquidity efficiency

BNY Mellon has introduced tokenized deposits through its Digital Assets platform, marking a strategic advancement in institutional digital cash capabilities. 

The global financial services company announced this development on social media, confirming the on-chain mirrored representation of client deposit balances. 

Early participants include major financial institutions and digital asset firms exploring programmable cash solutions for modern market infrastructure.

Tokenized Deposits Enable On-Chain Cash Representation

The new capability creates digital book entries on BNY’s private blockchain that represent existing demand deposit claims. 

Client balances remain recorded on traditional banking systems to preserve regulatory compliance and reporting standards. The company’s established risk and control frameworks govern all tokenized deposit operations.

BNY focuses initially on collateral and margin workflow applications for this technology. The permissioned blockchain architecture ensures institutional-grade security while enabling faster asset movement. 

This approach bridges conventional banking infrastructure with emerging digital rails including stablecoins and tokenized money market funds.

Chief Product and Innovation Officer Carolyn Weinberg stated that BNY remains committed to innovating and helping define how cash moves across modern financial systems.

 “Tokenized deposits provide us with the opportunity to extend our trusted bank deposits onto digital rails,” she explained. The platform aims to support rules-based, near real-time cash movements in future implementations.

Industry Leaders Support Digital Cash Infrastructure Development

Multiple prominent institutions joined BNY as early participants in the tokenized deposit initiative. Citadel Securities expressed satisfaction with the collaboration, noting tokenization represents a critical part of the next innovation wave. 

ICE’s Elizabeth King announced plans to support tokenized deposits across clearinghouses as infrastructure prepares for 24/7 trading.

Digital Asset CEO Yuval Rooz welcomed the practical, institution-ready approach to tokenized deposits. “Bringing deposit balances on-chain can make asset mobilization more efficient and unlock liquidity across key workflows,” he noted. 

Anchorage Digital’s Nathan McCauley described the development as a milestone moment, stating that money should move at the speed firms need under frameworks they trust.

Asset managers and trading platforms also confirmed participation in the program. Theo Golden from Baillie Gifford believes tokenization of cash is a critical enabler of broader asset tokenization across financial markets. 

Circle’s Dante Disparte welcomed the support for an always-on financial system, emphasizing that speed and new use cases need not compromise safety expectations. 

Galaxy’s Steve Kurz characterized the launch as a pragmatic step toward always-on markets that institutions can engage with today.

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