What to Know
BNY Mellon brings deposits on-chain with tokenized deposit service.
The service aims to speed up payments, support 24/7, and reduce delays in global transfers.
Other major banks like JPMorgan and HSBC are also testing tokenized deposits.
The Bank of New York Mellon has taken a major step into blockchain-based finance by launching a new tokenized deposit service. The move allows clients to transfer bank deposits using blockchain networks, marking another sign that traditional banks are getting more serious about digital assets.
According to Bloomberg, this service is designed to make payments faster, support round-the-clock operations, and help modernize how large financial institutions move money.
What Are Tokenized Deposits?
Tokenized deposits are digital versions of regular bank deposits. In BNY Mellon’s case, these tokens represent money that clients already hold in accounts at the bank. The funds themselves do not leave the bank. Instead, a digital version of the deposit moves on a blockchain system.
Because each token is fully backed by money held at BNY Mellon, it works like normal cash but can be transferred in a more modern way. The bank says these on-chain deposits can be used for payments, collateral, and margin transactions.
Why BNY Mellon Is Doing This
BNY Mellon processes around $2.5 trillion in payments every single day and safeguards nearly $55.8 trillion in assets for clients around the world. Many of these payments still rely on older systems that operate only during business hours and take time to settle.
Carl Slabicki, executive platform owner for Treasury Services at BNY Mellon, said the bank is exploring tokenized deposits to overcome limits in older payment systems. By using blockchain networks, transactions can settle almost instantly and operate 24/7. This could be especially useful for cross-border payments, where delays and extra costs are common.
In October 2025, the bank was actively exploring tokenized deposits as part of a broader effort to modernize its payment systems. “The idea is to move deposits and payments faster and more efficiently, while keeping them within the bank,” Slabicki said. “Tokenized deposits could help banks overcome legacy technology constraints,” he added, by allowing deposits and payments to move more smoothly across financial systems.
How Clients Can Use On-Chain Deposits
BNY Mellon says the new service has several practical uses for large institutions:
- Faster payments: Clients can move funds more quickly, even outside normal banking hours.
- Collateral and margin: Tokenized deposits can be posted as collateral in trading and clearing activities, reducing delays during busy market periods.
- Always-on operations: Blockchain systems allow payments to run continuously, unlike traditional banking rails that pause on weekends or holidays.
The bank stressed that this is not a new type of cryptocurrency, but a technical upgrade to how existing deposits move between parties.
Bigger Banking Trend
BNY Mellon is not alone in exploring deposit tokens. Other major banks are testing similar ideas. JPMorgan recently launched a test version of a dollar-based deposit token, while HSBC has introduced tokenized deposits for corporate clients handling international payments.
Global payment group SWIFT is also working on a shared blockchain system to support real-time international payments. BNY Mellon is one of more than 30 institutions involved in that effort, showing strong industry interest in this technology. This launch fits into BNY Mellon’s wider work in digital finance. In mid-2025, the bank partnered with Goldman Sachs to track ownership of money market funds on a blockchain. Major asset managers such as BlackRock, Fidelity, and Federated Hermes also took part in that project.
Final Thoughts
While BNY Mellon has not shared a full timeline for wider rollout, the launch signals serious interest in blockchain-based payment systems. Given the bank’s size and influence, its move could encourage other institutions to follow. If tokenized deposits prove reliable at scale, they could quietly change how money moves behind the scenes making global payments faster, cheaper, and available at any time.
Also Read: UK’s FCA to Open Crypto Licensing Gateway in September 2026 Ahead of New Regime
