Bank of New York Mellon has launched a tokenised deposit service that allows institutional clients to convert cash balances into digital tokens.
The new service operates on a private blockchain designed to support faster settlement and continuous transaction availability.
Major digital asset firms, including Ripple and Circle, are participating in the initial phase of the platform.
The bank said the product is aimed at modernising legacy financial infrastructure for large-scale institutional use.
Tokenised deposits allow clients to mirror traditional bank deposits on a digital ledger without moving funds off balance sheet.
BNY stated that the service is built to support round-the-clock settlement for margin, collateral, and payment transactions.
Traditional banking systems often delay these processes due to limited operating hours and manual reconciliation.
The bank said institutional investors increasingly demand instant access to liquidity to respond to fast-moving markets.
This need extends to meeting margin calls and managing collateral outside normal banking hours.
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.
Carolyn Weinberg said.
BNY described the initiative as part of a broader shift towards an “always-on” financial market model.
The bank confirmed that all client balances remain recorded within its traditional core banking systems.
This structure ensures regulatory reporting, auditability, and compliance remain unchanged.
BNY said the hybrid design balances blockchain functionality with the safety standards of a global systemically important bank.
Tokenised deposits also enable programmable payments that execute automatically when predefined conditions are met.
The bank noted that this capability could reduce settlement friction and operational risk.
Interoperability between these systems not only builds durable bridges between the real economy and the broader internet financial system but also demonstrates that speed and new use cases do not come at the expense of safety and soundness expectations of the world’s leading financial institutions.
Dante Disparte said.
Ripple Prime is among the first firms to actively use the tokenised deposit service.
BNY already serves as the primary custodian for reserves backing Ripple’s RLUSD stablecoin.
The integration allows Ripple Prime to manage cash liquidity on-chain with near-real-time settlement.
As more traditional financial institutions move into digital-native services in 2026, BNY is staying ahead of the curve, bringing digital assets directly into the banking system.
Noel Kimmel said.
Circle is also participating in the early rollout of the platform.
Additional testing partners include Securitize, Talos, Paxos, WisdomTree, and Invesco.
BNY said feedback from early participants will shape future expansions of the service.
The bank positioned the launch as a foundational step towards programmable institutional cash infrastructure.