The post BNY Mellon Launches Tokenized Deposit Platform for Institutions appeared on BitcoinEthereumNews.com. Key Points: BNY Mellon introduces tokenized cash capabilityThe post BNY Mellon Launches Tokenized Deposit Platform for Institutions appeared on BitcoinEthereumNews.com. Key Points: BNY Mellon introduces tokenized cash capability

BNY Mellon Launches Tokenized Deposit Platform for Institutions

Key Points:
  • BNY Mellon introduces tokenized cash capability on private blockchain platform.
  • Enhances deposit settlement efficiency for institutional clients.
  • Emphasizes integration with traditional banking systems.

BNY Bank, the world’s largest custodian, launched a blockchain-based platform enabling institutional clients to settle deposits on January 10, enhancing financial operations through secure digital infrastructure..

This initiative reflects BNY’s commitment to integrating traditional banking with blockchain, aiming to improve liquidity and reduce settlement times for institutional clients on its private network.

BNY Mellon’s Blockchain Platform Enhances Institutional Settlements

Major institutional figures have responded positively to the move. Elizabeth King from ICE highlighted the potential for enhanced settlement efficiency and programmability within the banking system. Carlos Domingo of Securitize commended BNY’s role in establishing regulated systems for on-chain cash and assets.

Integrating Traditional Finance with Next-Gen Digital Infrastructure

Did you know? The convergence of traditional banking with blockchain has seen consistent growth, similar to the rise of stablecoin use in institutional settings, highlighting the financial sector’s shift towards digital solutions.

BNY Mellon’s venture into tokenized deposits offers a bridge between traditional finance and blockchain technology. Historically, similar efforts have focused on improving infrastructure for institutional settlement and collateral management, without immediate effects on public crypto markets.

The initiative is expected to strengthen institutional workflows and liquidity management, according to experts. This fits a broader trend of banks leveraging private blockchains to streamline financial services, resulting in tangible benefits for participants within closed networks.

Source: https://coincu.com/blockchain/bny-mellon-tokenized-deposit-platform/

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