Summary
- BNY Mellon (BNY) said it will launch a blockchain-based tokenized deposits service.
- The service converts traditional bank deposits into on-chain digital assets to improve the efficiency of fund transfers and payments, and it aims to establish a 24/7 operating framework.
- Major institutions including ICE, operator of the New York Stock Exchange (NYSE), Ripple Prime, and Circle Internet Group are reported to be participating.
BNY Mellon (BNY), the largest custodian bank in the United States, is moving to expand its business using digital assets.
According to Bloomberg on the 9th (Korea time), BNY said in a statement that it will launch a blockchain-based “tokenized deposits” service. The tokenized deposits service is designed to convert traditional bank deposits into on-chain digital assets to improve the efficiency of fund transfers and payments.
BNY said the service represents deposits held in customer accounts as a form of digital cash on a blockchain, and that it can be used for collateral and margin transactions as well as rapid settlement. It added that the initiative aims to build a 24/7, year-round financial operating framework.
The service is said to include participants such as Intercontinental Exchange (ICE), operator of the New York Stock Exchange (NYSE); Citadel Securities; DRW Holdings; Ripple Prime, the prime brokerage arm of Ripple Labs; asset manager Baillie Gifford; and stablecoin issuer Circle Internet Group.
Carolyn Weinberg, BNY’s Chief Product and Innovation Officer (CPO), said that “the key is to connect traditional banking infrastructure and the digital ecosystem in a trusted way.”
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