- BNY Mellon, as an early Ripple Prime user, launches tokenized deposit to increase liquidity and speed up blockchain settlements.
- TradFi’s 24/7 blockchain operations will include a platform that mirrors bank deposits without replacing them.
Bank of New York Mellon has introduced tokenized deposit service for institutional customers. This service allows financial institutions to use a blockchain-based platform for representing traditional deposits as on chain entries.
The innovation’s goal is to improve the efficiency of collateral and margin operations, as well as liquidity management.
Today, we are proud to announce our partnership with @BNYglobal launched tokenized deposit services for institutional clients – bringing the promise of digital assets directly into the banking system – with Ripple Prime as an early adopter.
We’re proud to expand our longstanding, strategic collaboration with… https://t.co/K07aSJn8g1
— Ripple (@Ripple) January 9, 2026
Ripple Prime is the prime brokerage division of Ripple. It was among the early adopters. Ripple purchased the division for $1.25 billion last year to position itself deeper in institutional digital assets markets. reported. BNY’s announcement is a step forward in the integration of blockchain with traditional banking infrastructure.
Carolyn Weinberg is BNY’s Chief Innovation and Product Officer. stated:
“Tokenized deposits provide us with the opportunity to extend our trusted bank deposits onto digital rails — enabling clients to operate with greater speed across collateral, margin, and payments, within a framework built for scale, resilience, and regulatory alignment.”
BNY’s platform features and industry participation
BNY’s platform reflects client deposits onto a permissioned Blockchain. It does not replace the traditional records of banks, but rather complements them in order to enhance internal workflows. BNY’s risk, compliance and control management systems govern tokenized entries. The platform maintains the legal structure that is currently associated with bank deposits. This avoids the regulatory uncertainty usually associated with cryptocurrency or stablecoins.
Citadel Securities and DRW Holdings are among the first participants on this platform. Intercontinental Exchange(ICE), Circle Asset Management, BaillieGifford, Circle, as well as asset manager BaillieGifford, also participate. They will use it to increase payment efficiency as well as gain access to 24/7 programmable liquidity management. CNF outlinedRipple previously had a partnership with BNY, which offered custodial and other services to RLUSD, Ripple stablecoin backed by USD. According to the report BNY is the main reserve custodian of RLUSD.
Instituional Push for On Chain Settlement
This move comes as part of an overall push to utilize blockchain technology for round-the-clock liquidity management and settlement. Tokenized deposit are being recognized As a solution to embed bank-grade assets on digital infrastructure.
You can also read about the following: Paxos
Tokenized Deposits are a sign that the trusted banking infrastructure has moved on-chain.
BNY launched its latest platform after a pilot in October 2025. Goldman Sachs has partnered up with the bank to tokenize money market fund shares, just as they did previously. detailed CNF JPMorgan and HSBC also are moving in the same direction. JPMorgan is expanding its JPM Coin for institutional use while HSBC will launch tokenized deposits for U.S. clients and UAE residents.
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Source: www.crypto-news-flash.com
