BNY Explores Blockchain Payments Using Tokenized Deposits

Core Insights - Bank of New York Mellon (BNY) is exploring tokenized deposits to facilitate client payments using blockchain technology [1][2] - The bank is modernizing its infrastructure, particularly its treasury services, which processes $2.5 trillion in payments daily [2] - Tokenized deposits are seen as a solution to overcome legacy technology constraints, enhancing the movement of deposits and payments within banking ecosystems [3] Group 1: BNY's Initiatives - BNY launched a tokenization project in collaboration with Goldman Sachs to utilize blockchain for tracking ownership of money market funds [3] - The project aims to improve the utility and transferability of existing money market fund shares [4] Group 2: Industry Developments - JPMorgan Chase announced plans to launch a "deposit token" for institutional clients, representing commercial bank money [5] - HSBC expanded its tokenized deposit service to include cross-border transactions, successfully conducting its first U.S. dollar transactions between Hong Kong and Singapore [6]