BNY Launches Tokenized Deposits for Real-Time Institutional Settlement

BNY Mellon, a major financial services platform managing over $55 trillion in assets, has introduced tokenized deposit capabilities on its Digital Assets platform. This feature allows institutional clients to mirror cash balances on a private blockchain for near-real-time settlement.

The service initially targets collateral and margin workflows, utilizing BNY's traditional core banking systems to maintain official records on a private blockchain.
Tokenized deposits are created as digital book entries that match clients' existing deposit claims 1:1 without issuing new money.
Clients can transfer mirrored balances on-chain swiftly to meet margin calls or move collateral, aiming to reduce settlement frictions.
The system retains bank supervision and risk controls, aligning with regulatory and reporting standards.

This initiative aligns with broader industry trends towards asset tokenization:

BlackRock plans to tokenize over $4.1 trillion in traditional products.
Standard Chartered recently launched a similar tokenized deposit product in Hong Kong.
Goldman Sachs is exploring further developments in tokenized products.

These developments reflect the growing interest and implementation of Real World Assets (RWA) tokenization, which gained significant momentum in 2025.