BNY Mellon Launches Token Deposit Feature for Institutional Clients – Expert Breaks It Down
The Bank of New York Mellon (BNY Mellon) has taken a significant step forward in the cryptocurrency and digital asset space by introducing token deposit capabilities specifically for the institution’s clients.
Token Deposit Launched at BNY Mellon
In accordance with reports in fact, the new system runs on a private, permissioned blockchain. Traditional deposit balances will still be recorded in traditional banking systems, providing customers with security and flexibility.
BNY Mellon has expressed that the introduction of tokenized deposits can help to improve efficiency significantly. According to Carolyn Weinberg, the bank’s Chief Product and Innovation Officer:
Deposit with tokens gives us the opportunity to extend our trusted bank deposits on digital rails—enabling customers to operate at high speed across securities, limits, and payments, within a framework designed for scale, resilience, and regulatory oversight.
The launch is part of a broader plan to integrate mainstream banking with emerging digital infrastructures, including stablecoins and money market currency tokens.
In the long term, BNY Mellon is of the opinion that token deposits will support rules-based, near real-time cash movements, improve settlement processes and improve liquidity for institutional clients.
Yuval Rooz, founder and CEO of Digital Asset, welcomed the opportunity to partner with BNY Mellon, highlighting how the move represents an efficient, institutional-friendly approach to tokenization.
He noted that the delivery deposit balances on-chain it can significantly improve inventory and unlock liquidity for all key workflows.
Major Financial Players Join
Market expert MartyParty provided understanding in the results of this launch, stating that the token deposits create a digital representation in the chain—”wrapper”—of the actual balance of the customer’s money stored in the traditional accounts of BNY.
He emphasized that real money remains secure within a regulated banking ecosystem, earns interest and remains the direct responsibility of BNY Mellon, designated as the most important global bank (G-SIB).
Unlike stablecoins or other crypto-assets, token deposits represent programmable bank money on a private blockchain, synchronized with the bank’s master records.
The advantages are great, they allow 24/7 operation, fast or immediate money transfers, and programmable payments made under certain conditions.
This development is also expected to reduce the conflicts associated with legacy systems and improve significantly financial efficiencyeven outside of traditional banking hours.
The list of initial participants in this program includes Intercontinental Exchange (ICE), Citadel Securities, DRW Holdings, Ripple Prime, Circle (issuer of USDC), Anchorage Digital, Galaxy, Invesco, and Baillie Gifford.
These institutions will be testing real-time workflows such as collateral management and premium payments, further ensuring the effectiveness of BNY Mellon’s new offering.
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