- BNY Mellon is exploring blockchain-based tokenized deposits as part of efforts 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 boost confidence in digital asset innovation.
Bank of New York Mellon Corp. (BNY Mellon) is investigating the use of tokenized deposits as part of its ongoing initiative to modernize payment infrastructure.
The project aims to enable clients to make payments using blockchain technology, reflecting a broader shift among global financial institutions toward adopting frameworks for digital assets.
Carl Slabick, Executive Platform Owner for BNY Mellon’s treasury services, says the effort aligns with the bank’s work to improve real-time, instant, and cross-border payments.
He notes that tokenized deposits could allow banks to “overcome legacy technology constraints” and streamline the movement of deposits and payments both within their own ecosystems and, eventually, across wider financial markets as industry standards mature.
BNY Mellon’s treasury services processes roughly $2.5 trillion in payments every day, 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 constitute a claim against a commercial bank.
Unlike traditional transfers, which can take days to settle, transactions that use tokenized deposits are processed on blockchain rails, enabling near-instant settlement.
Proponents say this model could reduce costs and support 24/7 transaction capability.
BNY Mellon’s initiative follows similar experiments launched by other major institutions.
JPMorgan Chase & Co. began a pilot in June for its own token, JPMD, which represents U.S. dollar deposits held at the bank.
Meanwhile, HSBC Holdings Plc rolled out a tokenized deposit service in September that allows corporate clients to move currencies across borders more efficiently and securely.
In Europe, momentum has expanded into collaborative efforts among banks.
An alliance of nine financial institutions — including UniCredit SpA, ING Groep NV, and DekaBank — announced plans to develop a stablecoin together. That blockchain-based token would be 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 as regulation for digital assets becomes clearer.
The United States has recently implemented rules for stablecoins, while the European Union’s Markets in Crypto-Assets (MiCA) framework is being phased in.
These regulatory developments give 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 engaged 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.
BNY Mellon is also one of more than 30 global financial institutions working with SWIFT to develop a blockchain-based shared ledger for real-time cross-border payments.
Exploring tokenized deposits is another step in BNY Mellon’s broader digital transformation strategy.
As the financial system gradually evolves toward tokenized and blockchain-native assets, BNY Mellon’s initiatives highlight how established institutions are adapting to a distributed future — one in which efficiency, transparency, and interoperability could redefine global finance.