BNY Mellon launches tokenized deposits and reshapes global financial settlement

America's oldest bank joins the institutional tokenization race. Backed by the GENIUS Act and following in JPMorgan's footsteps, BNY Mellon is transforming traditional deposits into programmable digital assets to redefine global liquidity.

The boundary between traditional finance (TradFi) and the crypto ecosystem is becoming increasingly blurred. After 2024, marked by the rise of Bitcoin spot ETFs, and 2025, focused on consolidating the regulatory framework with the introduction of laws like CLARITY and GENIUS, the beginning of 2026 is defining a new stage in the global financial integrationThis year, the tokenization of real-world assets is consolidating itself as the axis that sustains the evolution of modern banking.

In this context, Bank of New York Mellon, the oldest banking institution in the United States, has once again taken a leading role in the digital transformation of the financial system. The bank announced the launch of its tokenized deposit service, an infrastructure built on blockchain technology that enables real-time payments, settlements, and collateral management.

With this development, the bank seeks to overcome the restrictions of conventional banking hours and traditional clearing systems, paving the way for a new era of efficiency and connectivity in financial services.

BNY Mellon drives the new era of digital money

With over $57,8 trillion in assets under management, BNY Mellon is taking a decisive step in the transformation of the global financial system. The oldest bank in the United States is exploring a model in which tokenized deposits become the cornerstone of a digital, adaptable, and programmable currency, aligned with the technological evolution of the contemporary financial sector.

Unlike traditional transfers, which require intermediaries and take days to process, tokenized deposits operate on blockchain networks, allowing value to move with near real-time speed. With this innovation, BNY Mellon aims to modernize banking infrastructure and streamline payment and clearing processes. According to Bloomberg estimates, this automation could reduce operating costs in the financial sector by 20% to 30%.

"It's largely about connecting the traditional banking system with emerging digital networks and new entrants in the financial ecosystem, in a way that institutions can trust.", explained Carolyn Weinberg, global director of product and innovation at BNY Mellon, in a recent interview with Bloomberg.

This new project illustrates a profound shift in the philosophy of global banking. With its arrival, blockchain technology is becoming more deeply integrated into the core of daily operations, driving a smarter and more transparent economy. In this process, financial institutions are not losing relevance, but rather consolidating their role as guarantors of stability in the new era of digital money.

The JPMorgan precedent: Ethereum as an institutional ally

BNY Mellon isn't the only major bank moving toward tokenization. Currently, large financial players are already turning blockchain's promises into concrete initiatives. For example, JPMorgan marked a milestone last December by launching a tokenized money market fund directly on the Ethereum network via its Onyx platform.

With this move, the North American banking giant demonstrates that traditional financial systems and blockchain networks can work together to offer immediate liquidity and more efficient processes. While JPMorgan uses its JPM Coin token for domestic and cross-border transactions, BNY Mellon is looking to advance on another front: improving the programmability of its services with more flexible digital technology.

In Weinberg's words, “The goal is to combine the strength of traditional banking with the efficiency of the digital ecosystem.”.

Thanks to smart contracts on the Ethereum network, financial processes can become much more agile. For example, collateral could be automatically released at the exact moment a loan is settled, all without human intervention and with less counterparty risk.

Regulatory convergence and competition in the RWA ecosystem

The regulatory landscape of 2026 is marking a turning point in the relationship between traditional banking and blockchain technology. Since the GENIUS Act came into effect in mid-2025, financial institutions have gained the clarity they needed to operate in the world of digital assets. The legislation established precise rules on reserves and audits for institutions that hold stablecoins, eliminating the legal uncertainty that had hindered banking innovation for years. As a result, banks like BNY Mellon have begun to compete directly with pioneering projects such as JPMorgan's Onyx platform.

While JPMorgan strengthened the use of its JPM Coin in domestic and cross-border transactions on Ethereum, BNY Mellon chose a different path. Its strategy focuses on interoperability and offering custody services to third parties, two key elements for a more open financial ecosystem. In addition to digitizing deposits, the institution has structured a money market fund compatible with stablecoin issuers, aligning its operations with the new backing and transparency requirements mandated by the GENIUS Act.

BNY Mellon works alongside a select group of financial and technology partners, including Intercontinental Exchange, Citadel Securities, DRW Holdings, Circle, Ripple Prime, and Galaxy Digital. Together, they are developing a continuous operational infrastructure to process international payments and transfers without interruption. Elizabeth King, global head of clearing at ICE, says this integration will enable a more agile and transparent settlement system, reducing costs and improving overall market efficiency.

In this scenario, digital custody is consolidating as the natural next step in the evolution of money. With the value of tokenized assets exceeding 21.000 millionThe question is no longer whether banks will adopt blockchain technology, but when they will complete that transition. 

For Steve Kurz of Galaxy Digital, the participation of institutions like BNY Mellon in this area confirms that digital money is now a working reality. Tokenization, once perceived as an experiment within the blockchain industry, now represents the standard that will redefine institutional banking by 2026.