BNY Mellon builds deposit tokens for on-chain payments
Bank of New York Mellon Corp. is developing tokenized deposits that let clients make blockchain-based payments. The bank processes $2.5 trillion in payments daily through its treasury services division.
Carl Slabicki, executive platform owner for Treasury Services at BNY, said tokenized deposits could help banks overcome legacy technology constraints and make it easier to move deposits and payments across their ecosystems. The bank expects the technology to enable nearly instantaneous settlements, reduce costs, and allow transactions around the clock.
JPMorgan launched its JPMD pilot in June, giving clients access to tokenized dollar deposits. HSBC rolled out a similar service for corporate clients. A consortium of nine European banks, including UniCredit, ING, and DekaBank, is working on a euro-backed stablecoin for blockchain settlement.
BNY oversees $55.8 trillion in assets under custody or administration. The New York-based custodian has worked on blockchain projects for several years. In July, BNY partnered with Goldman Sachs to use distributed ledger technology for maintaining ownership records of money market funds.
JPMorgan launched its JPMD pilot in June, giving clients access to tokenized dollar deposits. HSBC rolled out a similar service for corporate clients. A consortium of nine European banks, including UniCredit, ING, and DekaBank, is working on a euro-backed stablecoin for blockchain settlement.
BNY oversees $55.8 trillion in assets under custody or administration. The New York-based custodian has worked on blockchain projects for several years. In July, BNY partnered with Goldman Sachs to use distributed ledger technology for maintaining ownership records of money market funds.
The bank is also working with more than 30 global institutions and SWIFT to test a shared blockchain-based ledger for real-time cross-border payments.
Recent regulatory developments have provided clearer frameworks for digital finance. The U.S. has introduced stablecoin regulations (GENIUS Act), and the European Union's MiCA framework for crypto assets is now being implemented.
Slabicki said tokenized deposits are meant to complement existing payment infrastructure rather than replace it. BNY continues testing applications that combine regulated banking with blockchain technology.
Tokenized deposits represent a digital claim against a commercial bank that can be transferred and settled in real time on blockchain networks.
Recent regulatory developments have provided clearer frameworks for digital finance. The U.S. has introduced stablecoin regulations (GENIUS Act), and the European Union's MiCA framework for crypto assets is now being implemented.
Slabicki said tokenized deposits are meant to complement existing payment infrastructure rather than replace it. BNY continues testing applications that combine regulated banking with blockchain technology.
Tokenized deposits represent a digital claim against a commercial bank that can be transferred and settled in real time on blockchain networks.
Author
Sebile Fane cut her teeth in blockchain by building tiny NFT experiments with friends in her living room, long before the buzzwords took hold. She’s driven by a curiosity for the human stories behind smart contracts — whether it’s a small-town artist minting her first token or a DAO voting on climate grants — and weaves technical insight with genuine empathy.
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