- BNY Mellon is exploring blockchain-based tokenized deposits to modernize payment infrastructure.
- JPMorgan and HSBC have launched pilot projects for tokenized deposits to enable faster, cheaper cross-border transfers.
- Global banks are adopting blockchain as new regulations increase confidence in digital-asset innovation.
The Bank of New York Mellon Corp. (BNY Mellon) is investigating the use of tokenized deposits as part of its ongoing efforts to modernize payment infrastructure.
The initiative aims to allow clients to make payments using blockchain technology, reflecting a broader shift among global financial institutions toward digital-asset frameworks.
According to Carl Slabicki, 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 help banks “overcome legacy technology constraints” by streamlining 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 process about $2.5 trillion in payments per day, underscoring the potential scale and impact of this innovation.
The bank sees blockchain as a tool to make transactions faster, more efficient and more secure — a view shared by several leading players in the global banking sector.
Banks moving toward blockchain-based payments
Tokenized deposits are essentially digital representations of customer deposits, creating a claim on a commercial bank.
Unlike traditional transfers that can take days to settle, transactions using tokenized deposits are conducted on blockchain rails, enabling immediate settlement.
Proponents say this model can reduce costs and allow transactions to occur 24/7.
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 dollar deposits at the bank.
Meanwhile, HSBC Holdings Plc introduced a tokenized deposit service in September, giving corporate clients a more efficient and secure way to transfer currencies across borders.
In Europe, the momentum has extended to 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 dynamics and regulatory clarity
The renewed interest from banks in blockchain comes amid growing regulatory clarity around digital assets.
The United States has recently put forward regulations for stablecoins, while the European Union’s Markets in Crypto-Assets (MiCA) framework is being implemented.
These 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 been a steady participant in blockchain initiatives.
In July, the bank announced a collaboration with Goldman Sachs Group Inc. to use blockchain to maintain ownership records for money market fund holdings.
Additionally, BNY Mellon is among more than 30 global financial institutions working with SWIFT to develop a shared blockchain-based ledger for real-time cross-border payments.
Exploring tokenized deposits marks a new stage in BNY Mellon’s broader digital transformation strategy.
As the financial system gradually evolves toward tokenized, blockchain-compatible assets, BNY Mellon’s initiatives highlight how traditional institutions are adapting to a more distributed future — one in which efficiency, transparency and interoperability could reshape global finance.