Bank of New York Mellon is giving old-school bank deposits a modern upgrade by putting them on the blockchain.
The idea is pretty straightforward. Clients keep their money at BNY like they always have, but now those deposits can be turned into digital tokens that move on blockchain networks. It’s still regular bank money — just built to work in a faster, always-on system.
According to Bloomberg, BNY is launching this tokenized deposit service for large institutional clients, letting them move cash using digital rails instead of traditional banking systems that shut down at night or on weekends.
Big names are already paying attention. Companies like Intercontinental Exchange, Citadel Securities, DRW, Ripple Prime, Baillie Gifford, and stablecoin giant Circle are either involved or closely watching. That mix of banks, traders, and crypto firms shows how blockchain tech is no longer on the fringe — it’s becoming standard financial plumbing.
These tokenized deposits could also become a key piece of the future of trading. As stocks and bonds move onto blockchains, money itself needs to settle trades instantly. Tokenized deposits can handle that role, making real-time settlement possible without relying on separate stablecoins or risky workarounds.
BNY’s leadership says the goal isn’t to reinvent banking, but to connect trusted systems with new technology in a safe way. Institutions don’t have to take big risks or jump into unknown territory — they’re just getting better tools.
BNY isn’t alone in this move. JPMorgan already has JPM Coin, and HSBC plans to expand its own tokenized deposit program this year. With the recent passage of the Genius Act, it’s becoming clear where things are headed.
Banks aren’t trying to replace money. They’re simply upgrading how it moves in a world that never sleeps.
