BNY has begun piloting a tokenised deposit service that allows clients to move money across blockchain‑based rails, according to Bloomberg.
The bank, one of the world’s largest custodians with $57.8trn in assets under custody or administration, is exploring how on‑chain representations of commercial bank money could make core market functions faster and more efficient, according to the Bloomberg article, published January 9, 2025. Tokenised deposits are fully backed by cash already held within the banking system, but can be transferred instantly on permissioned blockchain networks.
Carolyn Weinberg, Chief Product and Innovation Officer at BNY, told Bloomberg the initiative is about connecting “traditional banking infrastructure and traditional banking institutions with emerging digital rails and digital ecosystem participants in a way that institutions trust”.
BNY’s pilot joins a growing number of institutional initiatives exploring how blockchain‑based tools could support settlement processes, liquidity management and collateral movements within existing market infrastructure.
