Tokenized deposits: BNY Mellon pilot aims faster settlement
Tokenized deposits: BNY Mellon pilot aims faster settlement
Tokenized deposits are being piloted by BNY Mellon in 2025 as the custodian tests blockchain rails to speed settlement and cut costs for large-scale payments (BNY Mellon official site). BNY Mellon, the world's largest custodian, is running an exploratory pilot to move client deposits as digital tokens over a blockchain. The work is limited and experimental. The aim is to modernize a payments stack that still relies on legacy systems and to let clients move money within bank networks more quickly and with fewer steps. It should be noted that the programme is framed as a resilience and operational-efficiency exercise.
Article Summary
BNY Mellon, the world's largest custodian bank, is pioneering cryptocurrency innovation through a groundbreaking tokenized deposits pilot launching in 2025. The experimental blockchain-based program aims to revolutionize traditional banking infrastructure by enabling faster settlement times and reduced operational costs for large-scale digital payments. This strategic initiative represents a significant shift toward mainstream cryptocurrency adoption as BNY Mellon leverages blockchain technology to modernize legacy payment systems. The pilot program will convert client deposits into digital tokens, allowing seamless money transfers within banking networks through fewer processing steps and enhanced efficiency. The tokenized deposit framework positions BNY Mellon at the forefront of institutional DeFi integration, potentially transforming how traditional financial institutions handle cryptocurrency transactions. While currently limited and exploratory, this blockchain-powered settlement solution addresses critical pain points in conventional banking operations. Market analysts view this development as a bullish indicator for cryptocurrency market growth, as major custodian banks embrace digital asset infrastructure. The pilot emphasizes operational resilience and efficiency improvements, signaling broader institutional acceptance of blockchain technology for mainstream financial services and potentially influencing Bitcoin and cryptocurrency market dynamics.
