- BNY Mellon explores blockchain-based tokenized deposits to modernize payment infrastructure.
- JPMorgan and HSBC have launched pilot tokenized deposit projects to enable faster, cheaper cross-border transfers.
- Global banks are embracing blockchain as clearer regulations boost confidence in digital asset innovation.
Bank of New York Mellon Corp. (BNY Mellon) is exploring 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 adopting digital asset frameworks.
According to Carl Slabicki, executive owner of the treasury services platform 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 enable banks to “overcome legacy technological constraints,” streamlining the movement of deposits and payments 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 each day, underscoring the scale and potential impact of this innovation.
The bank views blockchain as a tool to make transactions faster, more efficient and more secure — a perspective shared by several leading players across the global banking sector.
Banks advancing 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 processed on blockchain rails, enabling near-instant settlement.
Proponents say this model could cut costs and allow transactions to occur 24 hours a day, seven days a week.
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 held at the bank.
Meanwhile, HSBC Holdings Plc introduced a tokenized deposit service in September, offering corporate clients a way to move currencies across borders more efficiently and securely.
In Europe, 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 momentum and regulatory clarity
The renewed focus by the banking industry on blockchain comes amid increasing regulatory clarity around digital assets.
The United States has recently put rules in place for stablecoins, while the European Union’s Markets in Crypto-Assets (MiCA) framework is now being implemented.
These developments provide traditional financial institutions with greater confidence to experiment with blockchain-based payment solutions.
BNY Mellon, one of the world’s largest custodians with $55.8 trillion in 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 record ownership of 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 represents another step in BNY Mellon’s broader digital transformation strategy.
As the financial system gradually evolves toward tokenized and blockchain-based assets, BNY Mellon’s initiatives illustrate how traditional institutions are adapting to a more decentralized future — one in which efficiency, transparency and interoperability could reshape global finance.