The post BNY Mellon Launches Tokenized Deposits for Institutional Digital Cash Infrastructure appeared on BitcoinEthereumNews.com.

TLDR: BNY Mellon creates on-chain mirror of client deposits on permissioned blockchain for institutional use cases Major firms including Citadel Securities, ICE, and Circle participate in tokenized deposit program launch Platform initially targets collateral and margin workflows with plans for real-time cash movement capabilities Tokenized deposits maintain traditional banking safeguards while enabling 24/7 settlement and liquidity efficiency   BNY Mellon has introduced tokenized deposits through its Digital Assets platform, marking a strategic advancement in institutional digital cash capabilities.  The global financial services company announced this development on social media, confirming the on-chain mirrored representation of client deposit balances.  Early participants include major financial institutions and digital asset firms exploring programmable cash solutions for modern market infrastructure. Tokenized Deposits Enable On-Chain Cash Representation The new capability creates digital book entries on BNY’s private blockchain that represent existing demand deposit claims.  Client balances remain recorded on traditional banking systems to preserve regulatory compliance and reporting standards. The company’s established risk and control frameworks govern all tokenized deposit operations. BNY focuses initially on collateral and margin workflow applications for this technology. The permissioned blockchain architecture ensures institutional-grade security while enabling faster asset movement.  BREAKING: #BNY expands digital cash capabilities by enabling the on‑chain mirrored representation of client deposit balances on its #DigitalAssets platform via #tokenized deposits. This launch helps advance BNY’s ambitions to support programmable, on‑chain cash for institutional… pic.twitter.com/gQRiZuS0va — BNY (@BNYglobal) January 9, 2026 This approach bridges conventional banking infrastructure with emerging digital rails including stablecoins and tokenized money market funds. Chief Product and Innovation Officer Carolyn Weinberg stated that BNY remains committed to innovating and helping define how cash moves across modern financial systems.  “Tokenized deposits provide us with the opportunity to extend our trusted bank deposits onto digital rails,” she explained. The platform aims to support rules-based, near real-time…

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Filed under: News - @ January 10, 2026 5:25 am