BNY Mellon Launches Tokenized Deposits on Balance Sheet, Different from Stablecoins, to Automate Payments, Margin Calls, and Collateral Management Continuously.
BNY Mellon has just activated a tokenized deposits service for institutional clients, transforming a discreet experiment into operational financial infrastructure. The world’s largest custodian bank, with $57.8 trillion in assets under custody, is entering a new phase of banking tokenization, driven by a regulatory environment that has become much more favorable in the United States.
BNY has not tested the device with marginal players. Among the first users are key names in financial and crypto markets: ICE, Citadel Securities, DRW, Ripple Prime, Baillie Gifford, and Circle. ICE has confirmed working on a seamless integration of the service within its clearinghouses, underscoring the systemic nature of the initiative.
Blockchain Banking Deposits, Not Stablecoins
The service launched by BNY creates a blockchain representation of deposits held directly at the bank. Unlike stablecoins, these tokenized deposits remain traditional bank liabilities, remunerated, recorded on the institution’s balance sheet. In other words, this is not a parallel private currency but a digital extension of the existing banking system.
The solution is designed for institutional payments, margin calls, and collateral management. With programmable features, settlements can be automated and executed faster, with the stated ambition of achieving 24/7 availability.
Prominent Clients from Launch
This launch comes at a time when BNY’s cash management processes handle around $2.5 trillion per day. The goal is clear: to alleviate frictions inherited from traditional payment systems and bring the banking infrastructure closer to new digital rails.
An Underlying Trend Accelerated by Regulation
The activation of the service is part of a broader dynamic. The passage of the Genius Act in the United States has clarified the regulatory framework for digital currencies pegged to the dollar, providing banks with sufficient visibility to invest heavily in on-chain payments and settlements.
Even though tokenized deposits remain within the banking perimeter, the law has acted as a catalyst. It has transformed regulation, long seen as a hindrance, into an accelerant. BNY’s leadership fully embraces this shift, qualifying tokenization and digital assets as a structural trend to which the bank intends to firmly anchor itself.
A Race Among Global Banks
BNY joins an already established group. JPMorgan began offering blockchain deposit accounts as early as 2019 and recently expanded the usage of its deposit token for institutional clients. HSBC plans to extend its own tokenized deposit service to the United States and the United Arab Emirates, while Barclays is actively exploring “tokenized money” infrastructures.
The difference now lies in execution speed and integration with existing markets. With this launch, BNY is no longer just an observer. It positions tokenized deposits as a tangible, immediately usable tool for payment and collateral flows.
Towards a New Financial Plumbing
This movement marks a silent yet profound evolution. Tokenization is no longer confined to securities or crypto experiments. It now tackles banking currency itself, at the core of the global financial plumbing.
For institutions, the challenge is strategic: to maintain the centrality of banks in a world where digital rails are gaining ground. For BNY, the message is clear. The bank will not passively undergo the transformation of the financial system. It aims to be one of its architects.
