BNY Mellon‘s tokenized deposits are being explored right now to enable clients to make payments using blockchain technology. The bank actually handles roughly $2.5 trillion worth of payments daily and is working on this initiative to modernize infrastructure, including scaling real-time, instant, and even cross-border payments.
BNY Mellon Tokenized Deposits

BNY Mellon tokenized deposits are essentially digital coins that are transferable and represent a deposit claim against a commercial bank. These tokens represent digital versions of deposits that customers hold in their accounts. As blockchain rails process transactions using these coins, settlement happens instantaneously.
Carl Slabicki, executive platform owner for Treasury Services at BNY, stated:
“Tokenized deposits could help banks overcome legacy technology constraints, making it easier to move deposits and payments across their own ecosystems – and eventually, across the broader market as standards mature.”
Real-Time Cross-Border Payments and Blockchain Payments

The project is actually part of BNY Mellon’s broader work to modernize infrastructure for blockchain payments along with real-time cross-border payments. The effort is happening as other large financial institutions are experimenting with ways they can use digital assets to make payments faster and also cheaper. JPMorgan Chase launched a pilot back in June of a token called JPMD, while HSBC Holdings started a tokenized deposit service late last month that enables its corporate clients to securely move currencies across borders.
Image placeholder 2: Digital blockchain network visualization
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Digital Asset Custody and Tokenized Bank Deposits

BNY Mellon, which oversees $55.8 trillion in assets under custody and administration, has actually been active on digital assets and blockchain for several years now. In July, the bank announced it was collaborating with Goldman Sachs Group to use blockchain technology to maintain an ownership record of money market funds, which ties directly into digital asset custody capabilities.
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Financial institutions looking to tokenize other assets such as stocks and bonds also view tokenized bank deposits as beneficial, as they would use these deposits for the settlement part of the transaction.. BNY is among more than 30 global financial institutions working with Swift to design and build a blockchain-based shared ledger right now, with the first prototype focused on real-time cross-border payments and settlement.