Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
The Bank of New York (BNY) Mellon has launched a tokenized deposit service that allows institutional customers to convert cash into digital tokens.
The initiative brings together major crypto players, including Ripple and Circle, on a private blockchain designed to speed up monetary transfers.
Sponsored
Sponsored
BNY targets ‘permanent’ markets with new digital deposit offerings
The new offer allows its institutional customers to convert Traditional cash deposits in digital tokens On a special book.
She said Carolyn Weinberg, Head of Product and Innovation at BNY, said: “Tokenized deposits give us the opportunity to extend our trusted bank deposits to digital lines – enabling clients to work faster on collateral, margins and payments, in a framework designed for scale, flexibility and regulatory compliance.”
The move aims to modernize the financial infrastructure by enabling 24/7 settlement of complex transactions. These include margin management and collateral movement, which often encounter delays in the traditional banking system.
BNY noted that the service is in line with A global shift towards an “always on” operating model. In the financial markets.
According to the company, institutional investors increasingly need to move assets immediately to take advantage of market opportunities. This urgency also applies to meeting margin calls outside standard banking hours.
Sponsored
Sponsored
Tokenized deposits meet these needs by reducing settlement friction. It also allows for programmable payments, where transactions are completed automatically when specific conditions are met.
Despite the digital interface, BNY emphasized that customer balances are still recorded in its traditional systems to ensure the integrity of regulatory reports.
This allows for a hybrid approach The bank can offer blockchain interest While maintaining the security and compliance standards required by a global, systemically important bank.
“Compatibility between these systems not only builds solid bridges between the real economy and the wider online financial system, it also demonstrates that speed and new use cases do not come at the expense of security and soundness expectations from the world’s leading financial institutions,” said Dante Disparte, Circle’s Chief Strategy Officer and Head of Policy and Global Operations. to explain.
Ripple Prime, a subsidiary of the blockchain payment company Ripple, is one of the first companies to use this service.
This cooperation deepens The existing relationship between the two companies, where BNY operates Already as the main custodian of the reserves they support Ripple Stablecoin RLUSD.
By integrating with BNY’s digital ledger, Ripple Prime can manage its cash flow more flexibly, representing balances on the chain for near-real-time settlement.
“As more traditional financial institutions move to digital native services in 2026, BNY remains at the forefront, bringing digital assets directly into the banking system,” said Noel Kimmel, president of Ripple Prime.
In addition to Ripple Prime and Circle, the bank announced a list of other early participants testing the platform. These include digital asset companies such as Securities, Talos and Paxos, as well as traditional asset managers such as Wismatic and Invesco.
