BNY Launches Tokenized Bank Deposits for Institutional Clients

BNY Expands Offering with Tokenized Bank Deposits

Financial services company BNY announced on Friday the launch of tokenized bank deposits for its institutional clients. These deposits represent cash balances on the blockchain or claims of depositors against a bank.

The deposits will be issued on a private, permissioned blockchain network and will be used to support collateral and margin requirements, offering additional functionalities in the future. According to BNY, “As global financial markets move towards a continuous operating model, institutions are seeking faster, more efficient ways to transfer assets, with greater certainty around settlement, transparency, reduced costs, and the ability to unlock liquidity.”

This move is part of a broader trend where traditional financial institutions are transforming their infrastructure to meet the demands of the digital age. Furthermore, in September 2025, the SEC and CFTC in the United States proposed a transition to 24/7 operated capital markets, highlighting the need to align American markets with the realities of a global economy that never stops.