BNY Mellon Eyes Tokenized Deposits via Blockchain

• BNY Mellon may launch tokenized deposits for blockchain payments.
• The bank handles $2.5 trillion in daily payments.
• It oversees $55.8 trillion in assets under custody.

BNY Mellon, one of the oldest and largest banks in the United States, is reportedly exploring the launch of tokenized deposits to enable blockchain-based payments, according to Bloomberg. This move reflects the growing interest among traditional financial institutions to adopt blockchain technology for faster, more secure, and more efficient transactions.

The bank is currently evaluating how tokenized deposits could improve client payment services. With tokenized deposits, fiat money held in bank accounts can be represented digitally on a blockchain. This allows for instant settlement, reduced counterparty risk, and enhanced transparency—factors increasingly important in global finance.

The Scale Behind the Innovation

BNY Mellon isn’t just another player in the financial space. The bank processes about $2.5 trillion in payments every day and has $55.8 trillion in assets under custody. This massive scale makes any innovation at BNY potentially game-changing for the broader financial system.

By leveraging tokenized deposits, the bank could streamline these high-value transactions, cut down on operational costs, and create new financial products based on real-time settlement systems.

What This Means for Clients and the Industry

If BNY Mellon successfully implements tokenized deposits, its clients could experience significantly faster cross-border payments and settlements. This would eliminate the need for intermediaries and reduce settlement times from days to seconds.

Moreover, this development may push other traditional banks to follow suit, accelerating the integration of blockchain into mainstream banking. With more institutions adopting tokenized financial instruments, the entire industry could be on the verge of a major shift.