BNY Tokenized Bank Deposit Launches for Institutional Customers
Financial services company BNY, which is one of the oldest financial institutions in the United States, on Friday launched tokenized bank deposits for its institutional customers.
Tokenized bank deposits are onchain cash balances or claims on bank deposits. BNY will withdraw tokenized bank deposits on its in-house permissioned blockchain network, according to an announcement from the company.
Onchain deposits will be used to support collateral and margin requirements, with additional functions in the future, BNY said:
“As global financial markets move towards an always-on operating model, institutions are looking to move assets faster and more efficiently – with greater settlement certainty, transparency, lower friction and the ability to unlock liquidity.”
The move by BNY is the latest blockchain-related development from a major financial institution as banks and established players in traditional finance adapt legacy financial infrastructure to meet the needs of the digital age.
Related: Tokenization Will Disrupt Finance Faster Than Digital Corrupt Media: Crypto exec
The SEC proposes a transition to always-on capital markets
In September 2025, the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued a joint statement proposing a transition to a 24/7 capital market.
“Additional trading hours could better align U.S. markets with global and ever-changing economic realities,” the statement said.
The old financial system relied on a complex web of intermediaries and did not operate on nights, weekends or certain holidays, leaving investors and traders stranded when the market closed.
Blockchain technology eliminates middlemen and round-the-clock operations, reducing settlement time, transaction costs and cross-border trade.
Real-world asset tokenization (RWA) is one of the enablers of 24/7 capital markets in asset classes, including traditionally illiquid assets such as real estate and collectibles.
The SEC and CFTC say that 24/7 onchain markets and tokens are more “viable” for certain asset classes and not others, and that a “one-size-fits-all” approach to markets may not always work.
Magazine: TradFi Is Building Ethereum L2s To Simulate Trillions In RWAs: Inside Story
