BNY Launches Tokenized Bank Deposits for Institutional Clients
BNY has launched tokenized bank deposits on its permissioned blockchain for institutional clients to support collateral and margin requirements.Summary
BNY, a long-standing financial services company, announced the launch of tokenized bank deposits for its institutional clients on Friday. These tokenized deposits represent onchain cash balances or depositor claims against the bank and will initially be used to support collateral and margin requirements, with future functionality planned. BNY will issue these tokens on its in-house permissioned blockchain network. This move aligns with a broader trend among major financial institutions to overhaul legacy infrastructure to meet the demands of a global, always-on economy, which seeks faster asset movement, greater settlement certainty, and lower friction. This development follows a joint proposal by the SEC and CFTC to shift US capital markets to 24/7 operation by September 2025, moving away from the legacy system's reliance on intermediaries and limited operating hours.
(Source：Cointelegraph)