BNY Mellon and Big Banks Launch Tokenized Deposit Services

BNY Mellon and other major banks are launching tokenized deposit services, moving traditional assets onto blockchain rails for faster, programmable, and more efficient settlement, with key institutions like Ripple and ICE among the first users.

Major global banks are accelerating the adoption of asset tokenization, moving from pilot projects to live financial infrastructure. Institutions are now tokenizing deposits, securities, and private assets to enable faster settlement, programmable ownership, and improved capital efficiency. BNY Mellon has launched a blockchain-based tokenized deposit service, allowing clients to transfer deposits as digital assets for collateral, margin transactions, and fast payments. The service, which operates on a permissioned blockchain and is fully backed by cash reserves, aims for 24/7 operability and includes clients such as Intercontinental Exchange, Citadel Securities, DRW Holdings, Ripple Prime, Baillie Gifford, and Circle. Tokenized deposits differ from stablecoins as they are direct, interest-bearing liabilities of the issuing bank and remain within the traditional banking system. This initiative is seen as a critical step toward the broader tokenization of financial assets, with programmable features enabling automated settlements and bridging traditional finance with blockchain technology.