BNY activates tokenized deposit service for payments and collateral

Bank of New York Mellon Corp. has launched a tokenized deposit service for its institutional clients, which creates a blockchain-based representation of client deposits held at the bank. This service is intended for use in collateral and margin transactions, featuring programmable capabilities to automate settlements and speed up payments, with the bank aiming for 24/7 operability. Tokenized deposits differ from stablecoins as they are direct, interest-bearing liabilities of the issuing bank. The launch follows regulatory certainty provided by the U.S. Genius Act and positions BNY Mellon to capitalize on the digital asset 'megatrend.' Initial clients include major firms like Intercontinental Exchange Inc., Citadel Securities, and Circle Internet Group Inc. BNY Mellon joins peers like JPMorgan Chase and HSBC, which are also advancing similar tokenization projects.

(Source：The Block)