BNY Launches Tokenized Deposits in Digital Assets Expansion

Bank of New York Mellon Corp. has launched a tokenized deposit service that allows clients to transfer funds using blockchain rails, becoming the latest major global bank to push deeper into digital assets.

The form of digital cash is an on-chain representation of deposits that BNY clients hold in accounts at the bank, the company said in a statement Friday. This could be used for collateral and margin transactions and to make payments faster, as BNY works toward 24/7 operability, the bank said.