New York Mellon Bank Launches Tokenized Deposit Service, Enabling Customers to Transfer Funds via Blockchain

BlockBeats News, January 9th, according to Bloomberg, Bank of New York Mellon (BNY) has launched a tokenized deposit service that enables customers to transfer funds through a blockchain network. This tokenized deposit represents BNY clients' deposits in a bank account in an on-chain form, which can be used for collateral and margin trading, and enables 24/7 operation to expedite payment settlement. Institutions currently participating in this service include Intercontinental Exchange (ICE), Citadel Securities, DRW Holdings, Ripple Prime, Baillie Gifford, and Circle.

BNY currently manages or administers $57.8 trillion in assets under management, making it another global major bank delving into the digital asset space after JPMorgan and HSBC. ICE plans to support tokenized deposits in its clearinghouse to complement its preparation for 24-hour trade settlement. Furthermore, the service supports programmable transactions, allowing automatic fund transfers upon meeting predefined conditions (such as loan repayment obligations).