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BNY Mellon launches tokenized deposits, a major bank with a scale of $57.8 trillion officially enters on-chain finance
[BlockBeats] A piece of news has caused quite a ripple in the financial circle—Bank of New York Mellon (BNY) officially launched its tokenized deposit service, which means one of the world’s largest asset custodians has pressed the accelerator for digital finance.
The numbers are a bit staggering: BNY currently manages or administrates assets totaling $57.8 trillion. In the global banking system, this institution has always played the role of “stabilizer.” JPMorgan Chase and HSBC have already begun exploring digital assets, and BNY’s move comes a bit late, but definitely not too late.
So, how does it work? Simply put, deposits in BNY accounts now have an on-chain form. What can this on-chain version do? Collateral, margin trading, automatic settlement—operating 24/7 with lightning-fast payment speeds. Even more impressive, this system supports programmable transactions, meaning once conditions are set (like loan repayment time), funds are automatically transferred without manual intervention.
Who are the players involved? Intercontinental Exchange (ICE), Citadel Securities, DRW Holdings, Ripple Prime, Baillie Gifford, and Circle. ICE even plans to support this tokenized deposit system directly within its clearinghouse, aligning with the larger plan of 24-hour trading and settlement.
The significance of this is that top traditional financial players are truly embracing on-chain settlement. It’s no longer just conceptual hype but actual asset management business. The process of Web3 moving from the fringe to mainstream financial infrastructure is accelerating.