Bank of New York Mellon launches tokenized deposits

According to Bloomberg, Bank of New York Mellon (BNY) has launched a tokenized deposit service, enabling customers to transfer funds via a blockchain network. This tokenized deposit is an on-chain representation of deposits held in BNY customers' bank accounts, usable for collateral and margin trading, and operating 24/7 to expedite payments. Participating institutions include Intercontinental Exchange (ICE), Citadel Securities, DRW Holdings, Ripple Prime, Baillie Gifford, and Circle. With $57.8 trillion in assets under management or administration, this move makes BNY the latest global bank, after JPMorgan Chase and HSBC, to delve into the digital asset space. ICE plans to support tokenized deposits in its clearinghouse to support its 24/7 trading settlement. Furthermore, the service supports programmable transactions, allowing funds transfers to be automatically triggered when predefined conditions, such as loan repayment obligations, are met.