BNY Mellon Launches Tokenized Deposit Service to Enhance Liquidity Using Blockchain
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Blockchain Deposit Service: BNY Mellon's new service allows clients to transfer funds via blockchain, placing real bank deposits on-chain, significantly enhancing liquidity and enabling margin calls without waiting for banking hours.
- Diverse Clientele: The initial clients include major institutions like Intercontinental Exchange and Citadel Securities, covering exchanges, asset managers, and a major stablecoin issuer, indicating the service's broad applicability in financial markets.
- Compliance and Trust: BNY Mellon emphasizes that its service operates within the banking system and can pay interest, distinguishing it from stablecoins, thereby enhancing client trust in the connection between traditional banking and digital ecosystems.
- Market Potential: With other large banks like JPMorgan and HSBC also advancing similar services, BNY Mellon's innovation could drive increased trading volumes across the industry, especially in the context of around-the-clock trading.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
