BNY Rolls Out Tokenized Deposits for Near Real-Time Institutional Settlement

Core Insights - BNY has launched a tokenized deposit capability on its Digital Assets platform, enabling near-real-time settlement for institutional clients' cash balances on a private blockchain [1][4] - The service initially focuses on collateral and margin workflows, aiming to reduce settlement frictions and support an always-on operating model [5][6] - Other major financial institutions, including BlackRock and Standard Chartered, are also exploring tokenization, indicating a growing trend in the financial industry [7][8] Company Developments - BNY's tokenized deposits create on-chain digital book entries that correspond 1:1 to clients' existing demand deposit claims, recorded on a private, permissioned blockchain [3] - The system allows participating institutions to transfer mirrored balances on-chain in near real-time, facilitating quick responses to margin calls [4][5] - BNY's Chief Product and Innovation Officer emphasized the company's commitment to innovating cash movement in the modern financial system [6] Industry Trends - The financial industry is increasingly focused on tokenization, with BlackRock planning to tokenize over $4.1 trillion in traditional products [7] - The trend towards tokenization has been significantly influenced by the development of Real World Assets (RWA) in 2025, leading to explosive growth in real-world use cases [8] - The announcements from various financial institutions suggest that tokenization technology will continue to be a prominent trend in 2026 [8]