BNY Mellon Introduces Blockchain-Based Tokenized Deposits
- BNY Mellon will issue tokenized deposits using its private and permissioned blockchain.
- The bank aims to enhance liquidity efficiency and reduce settlement friction with these tokens.
- Clients’ balances will be recorded on-chain but remain within BNY’s traditional systems for compliance.
- BNY Mellon manages $57.8 trillion in assets and has $2.1 trillion under management as of September.
- The initiative is part of BNY’s broader digital infrastructure strategy, including a tokenized money-market fund with Goldman Sachs.
BNY Mellon’s launch of tokenized deposits marks a significant step in integrating blockchain technology into traditional banking operations, aiming to improve financial processes like liquidity management and settlement efficiency.
By leveraging its private blockchain, BNY Mellon seeks to bridge the gap between conventional banking systems and digital assets, reinforcing its position as a leader in financial innovation. (Source)
