BNY Mellon Launches Tokenized Bank Deposits as Wall Street Races Toward 24/7 Markets
BNY, one of the oldest names in American finance and the parent company of BNY Mellon, has taken another significant step into blockchain technology with the launch of tokenized bank deposits for institutional clients.
Announced on Friday, the move positions the financial giant at the forefront of a sweeping modernization effort across traditional finance as banks race to align with an increasingly digital, always-on global economy.
The new product—tokenized bank deposits—represents onchain cash balances or depositor claims held against the bank. Unlike stablecoins or other crypto-native assets, these deposits are fully backed, regulated bank liabilities issued directly by BNY on an in-house permissioned blockchain network.
According to the company’s announcement, the institution chose a permissioned blockchain model to maintain compliance and control while still enabling the benefits of tokenization. That includes rapid settlement, better transparency, and the ability to move assets programmatically.
BNY said the deposits will initially be used to support collateral and margin requirements but will expand to include additional functionality as the network matures. The goal is to integrate tokenized cash into institutional workflows that have historically been slowed by outdated systems, manual processes, and limited operating hours.
“As global financial markets shift towards an always-on operating model, institutions are seeking faster and more efficient ways to move assets — with greater settlement certainty, transparency, lower friction and capability to unlock liquidity,” the company stated.
A Legacy Giant Joins the Tokenization Wave
The launch marks the latest blockchain-oriented action from a major U.S. bank, following similar moves from JPMorgan, Citi, State Street, and others exploring real-world asset tokenization (RWA). These developments are part of a broader push to upgrade legacy infrastructure that has remained structurally unchanged for decades.
Tokenization allows traditionally illiquid or slow-moving assets—such as real estate, treasury products, commodities, or even collectibles—to be represented on a blockchain. The result is around-the-clock settlement, programmable liquidity, and the automation of processes that previously required multiple intermediaries.
BNY’s entrance reinforces what many industry analysts describe as the “second phase” of institutional crypto adoption: not just custody or trading services, but the integration of blockchain rails into core banking functions.
Regulatory Signals Align Toward 24/7 Markets
BNY’s timing also coincides with policy discussions in Washington that suggest regulators are preparing for a future where markets operate continuously.
In September 2025, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued a joint statement proposing a shift toward 24/7 capital markets—an idea once considered radical but now increasingly feasible due to blockchain infrastructure.
“Further expanding trading hours could better align US markets with the evolving reality of a global, always-on economy,” the agencies said.
Today’s financial system relies on a labyrinth of intermediaries—from clearinghouses to custodians to settlement agents—that require downtime and batch processing. Markets close nightly, pause on weekends, and observe numerous holidays. This structure often leaves investors stuck during volatile events occurring outside traditional trading hours.
Blockchain-based settlement removes many of these chokepoints by allowing assets to move freely at any time, across borders, and with minimal friction. The SEC and CFTC acknowledged that 24/7 onchain markets and tokenization are now more “viable” for certain asset classes, though they cautioned that a universal shift may not fit all instruments or industries.
The Road to Always-On Finance Accelerates
BNY’s move adds momentum to a trend reshaping global finance: the fusion of regulated institutions with programmable blockchain infrastructure. Tokenized deposits from a centuries-old financial institution send a strong signal that onchain settlement is no longer experimental—it is becoming operational.
The combination of technological readiness from banks and supportive signals from regulators suggests that the long-anticipated transition to 24/7 markets is edging closer to reality. As more institutions adopt tokenized cash and RWAs, the foundation for an always-on capital market ecosystem becomes harder to ignore.
For now, BNY’s tokenized deposits may start with modest use cases, but they represent something larger: the gradual rebuilding of financial plumbing to match a digital world that never sleeps.
