Bank of New York Mellon Corp., the world’s largest custodian bank, launched a tokenized deposit service for institutional clients, according to a Jan. 9 Bloomberg report. The service creates a blockchain-based representation of client deposits held at the bank.
The launch converts an exploratory effort into a live financial utility. The development follows The Block’s reporting last October that BNY Mellon was exploring tokenized deposits to ease legacy payment constraints in its treasury unit, which processes about $2.5 trillion daily.
Tokenized deposits are distinct from stablecoins, as they are direct, interest-bearing liabilities of the issuing bank. BNY said in the report that the service is designed for use in collateral and margin transactions, with programmable features enabling automated settlements to “make payments faster.” The bank is working toward 24/7 operability.
“This is very much about connecting traditional banking infrastructure and traditional banking institutions with emerging digital rails and digital ecosystem participants in a way that institutions trust,” Carolyn Weinberg, BNY’s chief product and innovation officer, told Bloomberg in an interview.
According to the report, initial clients of BNY’s tokenized deposit service include Intercontinental Exchange Inc., Citadel Securities, DRW Holdings, Ripple Prime, Baillie Gifford, and Circle Internet Group Inc.
A spokesperson from ICE confirmed to Bloomberg that the Fortune 500 Company will work to support the deposits across its clearinghouses around the clock.
Following regulatory tailwinds and peer movement
BNY’s launch lands as large financial institutions accelerate tokenization efforts following the passage of the U.S. Genius Act, which set a regulatory framework for stablecoins and clarified the treatment of dollar-backed digital money.
While tokenized deposits sit inside the banking system rather than alongside stablecoins, most banks view the legislation as a source of certainty for building blockchain-based payment and settlement infrastructure.
BNY Mellon CEO Robin Vince has publicly positioned the bank to capitalize on this shift. In a CNBC interview following initial reports of the bank’s exploration, Vince called digital assets and tokenization a “megatrend” the bank is attaching itself to. He stated that regulation, once a drag, had become “a bit of a tailwind” under the current administration.
BNY Mellon enters a field where other global banks are advancing similar projects. JPMorgan Chase & Co., which began offering blockchain-based deposit accounts in 2019, started rolling out its JPM Coin to institutional clients in November. Earlier this week, JPMorgan announced it would issue its deposit token directly on the privacy-focused Canton Network.
HSBC Holdings Plc also plans to expand its own tokenized deposit service to corporate clients in the U.S. and the United Arab Emirates in the first half of this year, while Barclays PLC bought a stake in stablecoin startup Ubyx earlier this year to explore “tokenized money.”
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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