- BNY Mellon is exploring blockchain-based tokenized deposits to modernize payment infrastructure.
- JPMorgan and HSBC have launched tokenized deposit pilots to enable faster, cheaper cross-border transfers.
- Global banks are adopting blockchain as new regulations increase confidence in digital asset innovation.
Bank of New York Mellon Corp. (BNY Mellon) is investigating the use of tokenized deposits as part of ongoing efforts to modernize its payments infrastructure.
The initiative is designed to enable clients to make payments using blockchain technology, reflecting a broader shift among global financial institutions toward adopting digital asset frameworks.
According to Carl Slabicki, Executive Platform Owner for Treasury Services at BNY Mellon, the project aligns with the bank’s work to improve real-time, instant and cross-border payments.
Tokenized deposits, he said, could allow banks to “overcome legacy technological limitations” and streamline the movement of deposits and payments both within their own ecosystems and, eventually, across the wider financial market as industry standards mature.
BNY Mellon’s treasury services business processes roughly $2.5 trillion in payments daily, underscoring the potential scale and impact of this innovation.
The bank views blockchain as a tool to make transactions faster, more efficient and more secure — a vision shared by several leading players in the global banking sector.
Banks move toward blockchain-based payments
Tokenized deposits are essentially digital representations of customer deposits that carry a claim on a commercial bank.
Unlike traditional transfers that can take days to settle, transactions using tokenized deposits on blockchain rails can achieve near-instant settlement.
Proponents say this model can reduce costs and enable round-the-clock transaction processing.
BNY Mellon’s move follows similar experiments by other major institutions.
JPMorgan Chase & Co. launched a pilot in June for its own token, JPMD, which represents U.S. dollar deposits at the bank.
Meanwhile, HSBC Holdings Plc rolled out a tokenized deposit service in September, offering corporate clients a more efficient and secure way to move currencies across borders.
In Europe, momentum has extended into collaborative efforts among banks.
A consortium of nine financial institutions — including UniCredit SpA, ING Groep NV and DekaBank — announced plans to jointly develop a stablecoin, a blockchain-based token pegged to fiat currency and backed by liquid assets such as government securities.
Industry momentum and regulatory clarity
The banking sector’s renewed focus on blockchain comes amid growing regulatory clarity around digital assets.
The United States has recently moved forward with stablecoin rules, and the European Union’s Markets in Crypto-Assets (MiCA) framework is now being implemented.
These developments have given traditional financial institutions greater confidence to experiment with blockchain-based payment solutions.
BNY Mellon, one of the world’s largest custodians with $55.8 trillion in assets under custody or administration, has consistently participated in blockchain initiatives.
In July, the bank announced a collaboration with Goldman Sachs Group Inc. to use blockchain for maintaining ownership records of money market funds.
Additionally, BNY Mellon is among more than 30 global financial institutions working with SWIFT to develop a blockchain-based shared ledger for real-time cross-border payments.
The exploration of tokenized deposits represents another step in BNY Mellon’s broader digital transformation strategy.
As the financial system gradually evolves toward tokenized and blockchain-enabled assets, BNY Mellon’s initiatives illustrate how traditional institutions are adapting to a decentralized future — one in which efficiency, transparency and interoperability could redefine global finance.