BNY Mellon, recognized as the largest custodian bank in the United States, is actively broadening its footprint in the digital asset sector.
The institution has recently introduced a new service centered around tokenized deposits.
As reported by Bloomberg, BNY Mellon unveiled plans to implement a blockchain-powered “tokenized deposit” offering.
This innovative service is designed to convert conventional bank deposits into digital assets recorded on a blockchain, aiming to enhance the speed and efficiency of payment and fund transfer processes.
In their official statement, BNY Mellon explained that these tokenized deposits represent customer account balances as digital cash on-chain. These tokens can be utilized for collateral purposes, margin trading activities, and rapid payment settlements.
Carolyn Weinberg, Chief Product and Innovation Officer at BNY Mellon, emphasized that “the crucial aspect lies in seamlessly integrating traditional banking systems with emerging digital ecosystems.”
The initial clientele for this service includes prominent entities such as Intercontinental Exchange (ICE), which owns the New York Stock Exchange (NYSE), along with Citadel Securities, DRW Holdings, Ripple Labs and its subsidiary Ripple Prime, plus Circle.
*Please note: This content does not constitute investment advice.