BNY (BNY), the largest custodian bank in the U.S., continues to expand its business using digital assets.
At this point, BNY has finally launched its tokenized deposit service.
According to Bloomberg, Bank of New York Mellon (BNY) announced it will launch a blockchain-based “tokenized deposit” service.
The tokenized deposit service aims to transform traditional bank deposits into on-chain digital assets to increase the efficiency of fund transfers and payments.
BNY stated in its announcement that the latest service represents deposits held in customer accounts in the form of digital cash on the blockchain and can be used for collateral and margin transactions as well as for fast payments.
BNY Chief Product and Innovation Officer (CPO) Carolyn Weinberg said, “The key here is to reliably connect traditional banking infrastructure and the digital ecosystem.”
According to the report, the service’s clients will include Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE), along with Citadel Securities, DRW Holdings, Ripple Labs, Ripple Prime, and Circle.
*This is not investment advice.
