The Bank of New York Mellon is evaluating tokenized deposits as a potential solution for upgrading its payment infrastructure and addressing constraints in legacy systems. Carl Slabicki, executive platform owner for Treasury Services at BNY, confirmed the exploration is part of broader modernization efforts across real-time, instant and cross-border payment rails.
BNY's treasury services unit processes approximately $2.5 trillion in payments daily and oversees about $55.8 trillion in assets under custody or administration. Moving transactions onto decentralized ledgers would enable near-instant settlement and 24/7 operations, contrasting sharply with traditional correspondent banking networks. Tokenized deposits represent bank‑issued digital coins backed one‑to‑one by commercial bank money.
The initiative arrives amid a wave of deposit token pilots by global financial institutions. JPMorgan launched a proof‑of‑concept for JPMD, a USD deposit token running on Base, in June of this year. HSBC recently rolled out a tokenized deposit service enabling corporate clients to facilitate cross‑border currency transactions with improved speed and efficiency.
Messaging network Swift has been developing a blockchain‑based shared ledger prototype designed for real‑time international payments. BNY participates alongside over 30 institutions in this collaborative effort to establish standards for digital settlement infrastructure. The convergence of multiple major banks pursuing similar solutions suggests growing institutional confidence in blockchain‑based payment systems.
BNY has maintained active involvement in digital asset infrastructure throughout 2025. The bank partnered with Goldman Sachs in July to maintain tokenized records of money market fund ownership, aiming to improve collateral mobility and settlement processes. The initiative includes participation from BlackRock, Fidelity and Federated Hermes, with ownership recorded on Goldman’s private blockchain.
The exploration of deposit tokens creates a complementary pathway where on‑chain cash can move alongside tokenized assets. Slabicki indicated that tokenized deposits could help banks overcome legacy technology constraints, initially within their own ecosystems. Eventually, as standards mature, the technology may extend across the broader market for wider adoption.
SBI Shinsei Bank partnered with Singapore’s Partior and Japan’s DeCurret DCP in September to explore multicurrency tokenized deposits for cross‑border settlements. The trio signed a memorandum of understanding to develop a blockchain framework enabling real‑time clearing across various currencies. These parallel initiatives demonstrate accelerating momentum toward digital settlement infrastructure.
While BNY did not disclose specific timelines for implementation, the exploration signals serious institutional interest in blockchain‑based payment solutions. The bank’s scale and influence in global custody services could accelerate adoption if tokenized deposits prove viable for high‑volume transaction processing.