World's largest custodial bank BNY to offer tokenized deposits for institutional investors

Core Insights - BNY, the world's largest custodial bank, is launching a platform for institutional clients to settle bank deposits on a blockchain, marking a significant step towards tokenization [1][2] - The platform aims to enhance settlement speed and liquidity management by mirroring client balances on a private blockchain [1][4] Group 1: Tokenization and Blockchain Implementation - BNY has been testing blockchain deposits to modernize its payment settlement process, with tokenized deposits being a key part of this initiative [2][3] - Tokenized deposits allow for faster operations across collateral, margin, and payments, while maintaining regulatory compliance [3][5] Group 2: Operational Details - The capability is now live on BNY's Digital Assets platform, enabling clients to represent their deposit claims as on-chain entries, which streamlines collateral and margin workflows [4] - The platform operates on a permissioned blockchain controlled by BNY, ensuring adherence to established risk, compliance, and control frameworks [5] Group 3: Industry Context - BNY is not alone in exploring blockchain settlement technology; other financial institutions are also transitioning to digital infrastructures for 24/7 asset settlement [6]