BNY Mellon Launches Tokenized Deposit Feature For Institutional Clients

BNY Mellon has introduced tokenized deposit capabilities for institutional clients, marking a significant advancement in the integration of traditional banking with digital asset infrastructure. The system operates on a private, permissioned blockchain while maintaining traditional deposit records in legacy systems—a dual approach designed to balance innovation with security.

Carolyn Weinberg, BNY Mellon's Chief Product and Innovation Officer, emphasized the efficiency gains: "Tokenized deposits extend trusted bank deposits onto digital rails, enabling faster operations for collateral, margin, and payments within a scalable and regulated framework." The initiative aligns with broader industry efforts to bridge gaps between conventional finance and emerging technologies like stablecoins and tokenized funds.

Long-term, the bank anticipates enabling NEAR real-time cash movements and streamlined settlements, enhancing liquidity for institutional participants. Yuval Rooz of Digital Asset endorsed the move, signaling growing institutional confidence in blockchain-based solutions.