BNY Mellon Launches Tokenized Deposit Service for 24/7 Blockchain-Based Funds Transfers

BNY Mellon launched a tokenized deposit service on Jan. 9 that enables clients to move funds over a blockchain network, Bloomberg reports. The tokenized deposits represent BNY customer balances held in traditional bank accounts on-chain, can be deployed as collateral and for margin trading, and are designed to support round-the-clock operations to accelerate payments. Institutions participating in the service include ICE, Citadel Securities, DRW Holdings, Ripple Prime, Baillie Gifford and Circle, while BNY currently has $57.8 trillion in assets under custody or administration, placing it alongside JPMorgan and HSBC among major global banks expanding into digital assets. ICE plans to accommodate tokenized deposits in its clearing houses to align with its preparations for 24-hour trade settlement, and the service also allows programmable transactions that automatically transfer funds once predefined conditions such as loan repayment obligations are met.