BNY Tokenized Deposits: Banks & Digital Firms Embrace Innovation
BNY enabled the on-chain mirrored representation of client deposit balances on its Digital Assets platform and said this marks the first step in its strategy to tokenize deposits.
With this initiative, the bank aims to support programmable, on-chain cash for institutional market infrastructure, BNY said in a Friday (Jan. 9) press release.
Several financial institutions and digital natives are participating in the project, according to the release.
In the future,BNY aims to support rules-based,near real-time cash movements,saying in the release that this will reduce settlement friction,enhance liquidity and boost operational efficiency for its institutional clients.
Carolyn Weinberg, chief product and innovation officer at BNY, said in the release that with innovations like this, the bank is supporting the move of institutional markets toward always-on operating models.
“Tokenized deposits provide us with the possibility 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,” Weinberg said.
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In another project in the space,BNY said