BNY Mellon Launches Tokenized Deposit Service on Blockchain
Article excerpt
Highlighted: the sentence this signal was extracted from
BNY Mellon launches tokenized deposit service on blockchain. BNY Mellon launches tokenized deposits enabling faster settlement, improved liquidity, and regulated blockchain payments for major institutional clients worldwide. Bank of New York Mellon has launched a tokenized deposit service using blockchain infrastructure. As a result, institutional clients can transfer bank deposits on digital rails. Moreover, the service supports payment support, use of collateral, and margin transactions. BNY Mellon brings bank deposits onto blockchain rails. According to Bloomberg, BNY Mellon said the service is a representation of existing client deposits held by the bank. As a result of this, no new money issuance happens through the platform. Instead, digital representations of deposits are sent onto-chain. The custodian, which holds $57.8 trillion in assets, has developed the service based on a private blockchain. Furthermore, the network is a permissioned model controlled by BNY Mellon. Therefore, access is still limited to approved institutional participants. According to the bank, tokenized deposits enable near real-time settlement in collateral transactions. Additionally, the margin movements become more efficient through the automated processing of blockchain. As a result, liquidity management is improved through trading and financing operations. Carolyn Weinberg, Chief...
Keep reading with a free account
The rest of this article, and every signal for BNY Mellon, is in your free account.
