BNY Launches On-Chain Tokenized Deposits, Bringing $57.8T Custody Giant Into 24/7 Crypto Settlement
Key Takeaways:BNY Moves Bank Deposits On-ChainHow the Tokenized Deposit System WorksTokenized Deposits vs. StablecoinsWhy Institutions Are Moving FastDeep Institutional Participation Signals Market Shift
The initial membership list looks like a cross-section of the world financial system and crypto-native infrastructure.
- Ripple Prime joined as an early adopter, expanding its collaboration with BNY as on-chain cash became central to institutional crypto operations.
- Circle, issuer of USDC, highlighted interoperability between tokenized bank deposits and payment stablecoins.
- Citadel Securities, DRW Holdings, and Galaxy emphasized faster capital movement and 24/7 settlement efficiency.
- ICE confirmed plans to explore tokenized deposits across its clearinghouses as it prepares for continuous trading.
- Asset managers like Baillie Gifford, Invesco, and WisdomTree pointed to tokenized cash as a prerequisite for broader asset tokenization.
It is not a pilot with fringe participants. It is a co-ordinated action by banks, market makers, asset managers, clearinghouses and crypto infrastructure providers. BNY placed tokenized deposits in the middle between analog banking and digitized financial rails.
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