The Bank of New York Mellon (BNY Mellon), the world's largest custodian bank, is exploring the use of tokenized deposits, a move that represents a significant step toward modernizing global financial infrastructure.
According to a Bloomberg report, the bank is evaluating how these digital instruments could help customers execute payments on blockchain networks, addressing the inefficiencies of legacy systems.
This initiative is part of a broader strategic push to improve real-time, instant, and cross-border payment capabilities. Tokenized deposits are digital currencies issued by a bank, representing a claim on its commercial money.
For BNY Mellon's treasury services unit, which processes approximately $2.5 trillion in daily payments and oversees $55.8 trillion in assets, the shift to decentralized ledgers promises near-instant settlement and uninterrupted operation, a stark contrast to the delays inherent in traditional correspondent banking.