What happened?
BNY Mellon is testing tokenized deposits so clients can use blockchain-based versions of their bank deposits to make payments. The pilot aims to enable instant, real-time and cross-border transfers on blockchain rails. This move follows similar pilots from big banks like JPMorgan and HSBC and comes as regulators in the U.S. and Europe clarify rules for digital assets.
Who does this affect?
Institutional clients, corporate treasuries and other banks that rely on BNY Mellon for custody and payments will be directly affected by faster, tokenized payment options. Fintechs, stablecoin issuers, payment networks and infrastructure providers could see new integration and partnership opportunities. Retail end users are affected indirectly through the potential for quicker cross-border payments, lower fees and around-the-clock settlement.
Why does this matter?
This could shift large volumes of payments from legacy rails to blockchain, speeding settlement, cutting intermediaries and lowering costs for big-ticket transactions. As major custodians and banks adopt tokenization, competition will intensify, pushing more banks to modernize and potentially creating new tokenized markets for real-world assets. Investors and market players should watch fee pools, transaction volumes and custody revenue—winners will be those who scale secure, interoperable token infrastructures first.