BNY has introduced tokenised deposit capabilities for institutional clients, enabling clients’ deposit balances to be mirrored as on‑chain digital book entries.
The system runs on a private, permissioned blockchain and is governed by the bank’s established risk, compliance and control frameworks, maintaining existing regulatory and reporting standards. Client balances will continue to be recorded on BNY’s traditional systems.
The initial launch will focus on collateral and margin workflows, with tokenised deposits designed to reduce settlement friction, improve liquidity management, and enable programmable cash movements.
The custodian said that tokenised deposits can help to reduce settlement friction, improve liquidity efficiency across collateral and margin workflows, and enable programmable settlements.
Early participants include a mix of traditional financial institutions and digital-native firms, such as Anchorage Digital, Citadel Securities, Digital Asset, and StoneX Digital.
Carolyn Weinberg, BNY’s chief product and innovation officer, said “Tokenised deposits provide us with the opportunity to extend our trusted bank deposits onto digital rails - enabling clients to operate with greater speed across collateral, margin, and payments, within a framework built for scale, resilience, and regulatory alignment.”
The launch forms part of a wider strategy to connect traditional banking infrastructure with emerging digital rails, including stablecoins, tokenised money market funds, and tokenised deposits.
BNY has stated that in the future, tokenised deposits aim to support rules-based, near real-time cash movements to reduce settlement friction and enhance liquidity and operational efficiency for institutional clients.
Commenting on the launch, Yuval Rooz, co-founder and CEO of Digital Asset: “We welcome the opportunity to work with BNY as they advance a practical, institution-ready approach to tokenised deposits. Bringing deposit balances on-chain can make asset mobilisation more efficient and unlock liquidity across key workflows.
“This direction aligns closely with our strategy for the Canton Network – supporting privacy-enabled on-chain infrastructure and solutions that help regulated institutions coordinate and transact in real time, while maintaining the controls, governance, and trust that underpin global financial markets.”