BNY Mellon Launches Tokenized Deposit Representation for Institutional Clients

BNY Mellon has taken a significant step in institutional crypto adoption by launching onchain digital representations of client deposit balances. The bank's Digital Assets platform now mirrors participating clients' demand deposit claims via a private, permissioned blockchain, while maintaining traditional accounting for regulatory compliance.

Initial use cases focus on collateral and margin workflows, with financial institutions and digital-native firms as early adopters. The MOVE signals growing institutional demand for blockchain-based settlement solutions. "Tokenized deposits allow us to extend trusted bank deposits onto digital rails," said Carolyn Weinberg, BNY's chief product and innovation officer.

This development occurs as traditional finance increasingly embraces blockchain technology for settlement efficiency. BNY Mellon's approach maintains existing risk frameworks while paving the way for future real-time cash movements across digital infrastructure.