BNY extends digital cash capabilities for institutional clients
09 January 2025 US
Image: atipong/stock.adobe.com
BNY has taken its first step to tokenise deposits by enabling the on-chain mirrored representation of client deposit balances on its digital assets platform.
Through the launch, BNY will further its ambitions to support programmable, on-chain cash for institutional market infrastructure.
Beginning with collateral and margin workflow use cases, BNY extends its cash capabilities with the launch, by creating on-chain digital book entries that represent participating clients’ existing demand deposit claims against the bank.
This capability operates on BNY’s private, permissioned blockchain and is governed by the company’s established risk, compliance, and control frameworks.
Early participants include a range of financial institutions and digital natives.
In the future, BNY plans to support rules-based, near real-time cash movements to reduce settlement friction and enhance liquidity and operational efficiency for its institutional clients.
Carolyn Weinberg, chief product and innovation officer, at BNY, says: “Tokenised 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.”
Steve Kurz, global co-head of digital assets at Galaxy, adds; “Tokenised deposits aim to bring real programmability and 24/7 settlement efficiency into the core of the banking system.
“We’re pleased to be working with BNY on this capability as it comes to market and see it as a pragmatic step toward always-on markets that institutions can engage with today.”
Through the launch, BNY will further its ambitions to support programmable, on-chain cash for institutional market infrastructure.
Beginning with collateral and margin workflow use cases, BNY extends its cash capabilities with the launch, by creating on-chain digital book entries that represent participating clients’ existing demand deposit claims against the bank.
This capability operates on BNY’s private, permissioned blockchain and is governed by the company’s established risk, compliance, and control frameworks.
Early participants include a range of financial institutions and digital natives.
In the future, BNY plans to support rules-based, near real-time cash movements to reduce settlement friction and enhance liquidity and operational efficiency for its institutional clients.
Carolyn Weinberg, chief product and innovation officer, at BNY, says: “Tokenised 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.”
Steve Kurz, global co-head of digital assets at Galaxy, adds; “Tokenised deposits aim to bring real programmability and 24/7 settlement efficiency into the core of the banking system.
“We’re pleased to be working with BNY on this capability as it comes to market and see it as a pragmatic step toward always-on markets that institutions can engage with today.”
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