BNY Mellon Tests Tokenized Deposits for $2.5 Trillion Daily Payments
Bank of New York Mellon (BNY), the largest custodial bank with $55.8 trillion in assets, is exploring tokenized deposits to modernize payment systems using blockchain technology.
- The initiative allows clients to make payments with tokenized deposits, potentially lowering transaction costs and enabling near-instant settlements.
- BNY handles approximately $2.5 trillion in daily payments.
- This move aims to overcome legacy system constraints, facilitating faster money transfers within and across financial networks.
- Other major banks are also experimenting with tokenization, like JPMorgan's trial of its JPMD token on Coinbase’s Base blockchain.
- In Europe, nine banks are developing a MiCA-compliant euro stablecoin.
- Previously, BNY Mellon partnered with Goldman Sachs to introduce tokenized money market funds.
The bank's CEO, Robin Vince, noted a cautious approach towards cryptocurrency compared to other lenders.