BNY enters tokenized deposits market amid banking digital shift

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Yaroslav Dmytrenko

09.01.2026

BNY enters tokenized deposits market amid banking digital shift — BNY launches tokenized deposit service for institutional clients

Bank of New York Mellon Corp., the world’s largest custodian bank, has launched a tokenized deposit service for institutional clients. The service creates blockchain-based representations of client deposits held at the bank.

BNY’s launch comes amid accelerating efforts by major financial institutions to tokenize assets following the adoption of the U.S. Genius Act, which established a regulatory framework for stablecoins and clarified the treatment of dollar-backed digital money.

Early clients of BNY’s tokenized deposit service include Intercontinental Exchange Inc., Citadel Securities, DRW Holdings, Ripple Prime, Baillie Gifford, and Circle Internet Group Inc.

Tokenized deposits differ from stablecoins in that they represent direct, interest-bearing liabilities of the issuing bank. In a report, BNY said the service is designed for use in collateral management and margin trading, with programmable features that enable automated settlement to “accelerate payments.”

“This is about connecting traditional banking infrastructure and institutions with new digital channels and participants in the digital ecosystem in a way that institutions trust,” Carolyn Weinberg, BNY’s Chief Product and Innovation Officer, told Bloomberg.

BNY CEO Robin Vince has publicly stated the bank’s intention to benefit from this shift. In an interview with CNBC following initial reports that the bank was exploring deposit tokenization, Vince described digital assets and tokenization as a “megatrend” the bank is joining. He also noted that regulation, once a constraint, has become “something of a tailwind” under the current administration.

Deposit tokenization becomes a growing trend

BNY is entering a market where other global banks are advancing similar initiatives. JPMorgan Chase & Co. began offering blockchain-based deposit accounts in 2019 and, in November 2025, started rolling out its JPM Coin deposit token for institutional clients.

HSBC Holdings Plc is also planning to expand its own tokenized deposit service for corporate clients in the United States and the United Arab Emirates in the first half of this year, while Barclays PLC earlier this year acquired a stake in stablecoin startup Ubyx to explore opportunities in “tokenized money.”

As we wrote, JPMorgan Expands JPM Coin Blockchain Payment Service to Euro Transactions

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