Financial Giant BNY Explores Tokenized Deposits to Modernize Global Payments
BNY, the world’s largest custodian, is preparing to modernize its massive payment network through tokenized deposits - digital bank money issued and transferred on blockchain infrastructure.
The move marks a significant step in the company’s push to merge traditional finance with real-time, onchain settlement.
The initiative, led by Carl Slabicki, head of Treasury Services platform development, aims to make global transactions faster and more efficient. With the bank processing over $2.5 trillion in daily payments and safeguarding nearly $56 trillion in assets, even minor improvements in settlement speed could reshape how capital moves across borders.
Unlike stablecoins or CBDCs, tokenized deposits would stay fully within regulated banking systems, each token representing a claim on fiat currency. This would allow payments to occur instantly while maintaining compliance and stability.
BNY joins a growing list of major financial institutions experimenting with blockchain settlement. JPMorgan recently piloted its JPMD token on Base, and HSBC introduced tokenized cash for corporate clients. Meanwhile, Swift is testing a shared ledger for cross-border payments.
This isn’t BNY’s first blockchain endeavor. In July, the bank collaborated with Goldman Sachs to tokenize money market fund records, improving liquidity and collateral tracking. Tokenized deposits are seen as the next evolution – enabling digital cash to move alongside tokenized assets within the same ecosystem.
Though no launch timeline has been confirmed, Slabicki suggested initial deployment may happen inside BNY’s own network before expanding industrywide. Analysts say the project could eventually make blockchain-based settlement a standard feature of mainstream banking.
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The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
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