BNY Mellon Trials Blockchain Deposits to Overhaul $2.5T Payments Processing

Core Insights - Bank of New York Mellon (BK) is testing tokenized deposits to modernize its global payment infrastructure and adapt to the shift towards blockchain-based finance [1][2] - The initiative aims to enable clients to make payments using tokenized deposits, facilitating near-instant settlement and potentially lowering transaction costs [2][3] - BNY Mellon currently processes approximately $2.5 trillion in payments daily [3] Company Developments - Carl Slabicki from BNY Mellon stated that the new technology could help banks overcome legacy constraints, allowing for faster money movement within networks and across the financial system [4] - BNY Mellon is part of a trend among major banks exploring tokenized funds, with JPMorgan and other European banks also engaging in similar initiatives [4] - Over the summer, BNY Mellon collaborated with Goldman Sachs to launch tokenized money market funds for clients [5] - CEO Robin Vince has indicated that BNY Mellon will not pursue crypto deposits as aggressively as some competitors [5]