BNY Launches Tokenized Balance Service

The Bank of New York Mellon – the world's largest custodial bank and first bank in history to surpass $50T in assets under custody – has taken the first step towards moving operations onchain with the launch of tokenized client deposits.

What's the Scoop?

• Onchain Representation: BNY now allows for onchain, mirrored representations of client deposit balances on its Digital Assets platform, the bank's first step toward blockchain-based bank money.
• Private Rails: The system will operate on BNY’s own private, permissioned blockchain. Balances will continue to be recorded on traditional systems to preserve regulatory and reporting integrity.
• Tangible Utility: Carolyn Weinberg, BNY's Chief Product and Innovation Officer, touted the potential use case of digital deposits, stating they will enable clients to "operate with greater speed across collateral, margin, and payments, within a framework built for scale, resilience, and regulatory alignment."
• Banking Bonanza: BNY's launch closely follows J.P. Morgan’s own deposit token rollout on Canton, marking the latest development in a bank-led race to modernize cash itself.