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BNY Mellon Bank Launches Tokenized Deposit Service in New York
Summary: According to Bloomberg, BNY Mellon Bank (BNY) has launched a tokenized deposit service, allowing customers to transfer funds through blockchain networks. The tokenized deposit is a digital representation of the funds held in BNY customer accounts, which can be used for collateral and margin trading, and operates 24/7 to speed up payment processing. Institutions currently ...
According to Bloomberg, BNY Mellon Bank (BNY) has launched a tokenized deposit service, allowing customers to transfer funds through blockchain networks. The tokenized deposit is a digital representation of the funds held in BNY customer accounts, which can be used for collateral and margin trading, and operates 24/7 to speed up payment processing. Institutions currently participating in the service include Intercontinental Exchange (ICE), Citadel Securities, DRW Holdings, Ripple Prime, Baillie Gifford, and Circle. BNY currently manages or administers assets worth $57.8 trillion, making it another global major bank diving into the digital asset space after JPMorgan and HSBC. ICE plans to support tokenized deposits in its clearinghouse to complement its 24-hour trading settlement preparations. Additionally, the service supports programmable transactions, allowing automatic fund transfers when predefined conditions are met, such as loan repayments.
