BNY Mellon Pilots Tokenized Deposits for $2.5T Daily Payments
BNY Mellon is piloting tokenized deposits to migrate part of its $2.5 trillion daily payment flows onto blockchain. Led by Carl Slabicki, the initiative will convert traditional bank deposits into on-chain tokenized deposits, enabling real-time settlement, 24/7 availability and reduced cross-border payments costs. In July, the bank teamed with Goldman Sachs, BlackRock, Fidelity and Federated Hermes to launch a tokenized money market fund on a private blockchain. BNY Mellon also joined over 30 institutions collaborating with SWIFT on a shared blockchain ledger for instant international payments. Similar pilots from JPMorgan’s JPMD, HSBC and SBI Shinsei Bank demonstrate rising adoption of programmable finance and real-world asset tokenization. As U.S. and EU regulators clarify stablecoin and digital asset rules, tokenized deposits could reshape payments infrastructure, boost on-chain liquidity and drive broader market adoption.
Bullish
Institutional pilots of tokenized deposits signal growing blockchain adoption in traditional finance. By enabling 24/7 real-time settlement and reducing cross-border frictions, BNY Mellon’s initiative—and similar projects at JPMorgan, HSBC and SBI Shinsei Bank—could boost on-chain liquidity and pave the way for broader programmable finance. For crypto traders, clearer regulatory frameworks for tokenized deposits and stablecoins may spur innovation and demand for blockchain-based assets, supporting bullish market sentiment in both short and long term.