BNY Mellon Explores Tokenized Deposits To Speed Up Payments: Bloomberg

**BNY Mellon Embraces Blockchain Technology with Tokenized Deposits Initiative**

BNY Mellon, a leading global custodian managing $55 trillion in assets, is exploring tokenized deposits and blockchain technology to revolutionize payment processing speeds and efficiency. According to Bloomberg reports, the banking giant is investigating how cryptocurrency infrastructure and distributed ledger technology can streamline traditional banking operations.

This strategic move represents a significant shift toward digital asset integration within traditional finance, potentially accelerating institutional adoption of blockchain-based payment systems. Tokenized deposits could enable near-instantaneous settlement times compared to conventional banking methods, reducing transaction costs and eliminating intermediary delays.

The initiative aligns with growing institutional interest in cryptocurrency and DeFi solutions, as major financial institutions seek competitive advantages through blockchain innovation. BNY Mellon's exploration of tokenized payment rails could influence other banks to accelerate their digital asset strategies, potentially driving broader cryptocurrency market adoption.

This development signals continued convergence between traditional banking and cryptocurrency ecosystems, suggesting institutional demand for blockchain technology extends beyond Bitcoin and digital asset custody services into core banking infrastructure modernization.