BNY Mellon is moving deposits onto blockchain rails. Bloomberg reports the custodian bank is launching a tokenized deposit service that will let large institutional clients move money as digital tokens. The roster of early users and interested parties reads like a who’s who of markets and crypto: Intercontinental Exchange, Citadel Securities, DRW, Ripple’s prime brokerage arm Ripple Prime, asset manager Baillie Gifford, and stablecoin issuer Circle. Why it matters: tokenized deposits can act as the cash leg for tokenized securities—meaning they could enable real-time settlement for tokenized stocks and bonds by making the payment piece instant and atomic with the asset transfer. BNY’s chief product and innovation officer, Carolyn Weinberg, frames the effort as a bridge between “trusted banking infrastructure” and “emerging digital rails,” designed to bring institutions onto blockchain without forcing a risky technology leap. BNY isn’t the first bank to try this. JPMorgan introduced JPM Coin, and HSBC has said it will expand its own tokenized deposit offering this year. Coming after the newly passed Genius Act, BNY’s move underscores an evolving reality: traditional banks aren’t trying to replace money — they’re upgrading how it moves. Expect this to accelerate conversations about tokenized markets, custody, and settlement as more institutional plumbing gets built on programmable rails. Read more AI-generated news on: undefined/news

#XRP