New York’s BNY Mellon, a financial titan, is pushing into a fresh way to handle money. This bank is now exploring “tokenized deposits.” It’s a move that aims to yank old payment systems into the modern era, using something called Blockchain.
🚀 BNY Mellon explora depósitos tokenizados para modernizar los pagos
El banco busca superar las limitaciones de los sistemas heredados mediante tecnología Blockchain
Con un manejo diario de 2,5 billones de dólares en pagos, esta iniciativa promete transacciones más rápidas… pic.twitter.com/fXvLgPdMpd
— Diario฿itcoin (@Blaze Trends)
BNY Mellon is the world’s biggest asset custodian. They want their customers to make payments directly on Blockchain networks. This would solve problems tied to older, slower systems. It’s all about making money moves faster, instantly, and across borders. Carl Slabicki, who leads Treasury Services for BNY Mellon, shared these plans with Bloomberg recently.
Slabicki put it plainly. He said tokenized deposits could help banks ditch their outdated tech limits. This would make it easier to move deposits and payments inside their own systems. Later, it would expand to the wider market as the technology gets better. BNY Mellon is no small player. They process roughly $2.5 trillion in payments every day. They also oversee a whopping $55.8 trillion in assets.
So, what exactly are tokenized deposits? Imagine digital assets banks issue. They are like a digital receipt for regular bank deposits. But here’s the kicker: these payments settle almost instantly. They use decentralized networks, like Blockchain, and work 24/7. This could seriously cut down on operating costs for banks.
Big Banks Joining the Digital Shift
BNY Mellon is not alone in this digital leap. Many financial giants and global companies are turning to Blockchain. They all want faster and cheaper ways to send money. JPMorgan Chase, for example, launched a trial program in June. It uses their JPMD token, which stands for dollar deposits, on the Base network with Coinbase. HSBC Holdings also rolled out a similar service last month. It lets corporate clients send money securely across borders.
In Europe, nine banks, including UniCredit SpA, ING Groep NV, and DekaBank, teamed up. They announced plans last month to create a Euro stablecoin. This digital euro would be backed one-to-one by real money. This push follows over ten years of banks tinkering with Blockchain. New rules are helping speed things up. The US has brought in stablecoin regulations. Meanwhile, the European Union’s crypto-asset rules kicked in this year.
A New Way to Move Money
BNY Mellon has been active in the digital asset world for a while. In July, they worked with Goldman Sachs. Their goal was to record ownership of money market funds on a Blockchain. This helps move collateral more smoothly and settles trades faster. BNY Mellon is also part of a big group of over 30 global financial firms. They are working with Swift on a Blockchain project. It aims to make cross-border payments happen in real-time.
Specific launch dates for these new services are still under wraps. Slabicki mentioned that tokenized deposits might first fix internal problems within the bank. After that, they would expand to the broader market. This approach also helps unlock the potential of Blockchain to digitize other assets, like stocks and bonds. This would make financial settlements much quicker.
BNY Mellon’s exploration shows a clear change in banking. Traditional banks are moving towards interconnected digital systems. This could lower costs, boost efficiency worldwide, and completely change how money moves. With clearer rules in place, these kinds of innovations will quickly weave Blockchain into everyday financial services.