$55.8T Giant BNY Mellon Tests Tokenized Deposits to Power $2.5T in Daily Payments

Core Insights - Bank of New York Mellon Corp. is testing tokenized deposits to modernize its payments infrastructure and expand blockchain use in global finance [1] - The initiative aims to facilitate blockchain-based payments using tokenized versions of traditional deposits [1][3] Group 1: Project Overview - The project supports real-time, instant, and cross-border transactions across BNY Mellon's global network [2] - BNY Mellon's treasury services division processes approximately $2.5 trillion in payments daily [3] Group 2: Technology and Benefits - Tokenized deposits serve as digital representations of cash held at commercial banks, enabling instant transfers and real-time transaction settlements [4] - This technology is expected to make payments cheaper, faster, and available 24/7 [4] Group 3: Industry Context - BNY Mellon's move aligns with growing blockchain adoption among major financial institutions, with JPMorgan and HSBC also launching similar initiatives [5] - Several European banks are exploring fiat-linked stablecoins, indicating a trend towards modernizing the global payments ecosystem [6] Group 4: Regulatory Environment - The acceleration of blockchain adoption in traditional finance is influenced by emerging regulatory clarity in the U.S. and Europe [7]