BNY Explores Blockchain Solutions for Daily Payments of $2.5 Trillion
BNY Mellon is considering the use of tokenized deposits to enhance its cross-border settlement capabilities, as well as to update its payment systems.
BNY Mellon is considering the introduction of tokenized deposits to migrate a portion of its substantial $2.5 trillion daily payment operations onto blockchain technology, thereby improving its cross-border transaction capabilities.
Carl Slabicki, executive platform owner for Treasury Services at BNY, stated that this initiative aims to modernize real-time and cross-border payments.
“Banks can overcome legacy technology barriers, making it simpler to transfer deposits and payments within their ecosystems and, as standards evolve, across the broader market,” Slabicki said.
Tokenized deposits are digital currencies that are directly backed by commercial bank money. Unlike stablecoins, which may rely on securities or reserves from third parties, tokenized deposits provide direct claims on bank balances.
Cointelegraph attempted to obtain a comment from BNY, but no response was received prior to publication.
Goldman Sachs and BNY to Introduce Tokenized Money Market Funds
In July, Goldman Sachs and BNY announced a partnership to offer institutional clients access to tokenized money market funds, designed to deliver real-time settlement and continuous market access in conventional finance. The ownership of these funds is recorded on Goldman’s private blockchain, with involvement from major players such as BlackRock, Fidelity, and Federated Hermes.
Additionally, BNY is actively collaborating with over 30 institutions on a shared blockchain-based ledger through SWIFT to facilitate real-time international payments.
Global Banks Testing Tokenized Deposits
BNY’s announcement comes in the context of various similar projects. In June, JPMorgan launched its own tokenized deposit pilot called JPMD, while HSBC recently introduced a cross-border tokenized deposit service for corporate clients.
In September, SBI Shinsei Bank partnered with Singapore’s Partior and Japan’s DeCurret DCP to investigate multicurrency tokenized deposits aimed at cross-border settlements, signing an MOU to develop a blockchain framework for real-time clearing across currencies.
