Ultimate Guide: New Bny Release Tokenized Deposits Amid Tradfi Rush Into Blockchain...

The service is available for institutional clients through an in-house permissioned blockchain, BNY said on Friday.

BNY, a financial services company that traces its roots back to one of the oldest financial institutions in the United States, launched tokenized bank deposits for its institutional clients on Friday.Tokenized bank deposits are onchain cash balances or depositor claims against a bank. BNY will issue the tokenized bank deposits on an in-house permissioned blockchain network, according to an announcement from the company.

The onchain deposits will be used to support collateral and margin requirements, with additional functionality in the future, BNY said, adding:

The move by BNY is the latest blockchain-related development from a major financial institution, as banks and established players in traditional finance overhaul legacy financial infrastructure to meet the demands of the digital age.

Related: Tokenization will disrupt finance faster than digital disrupted media: Crypto exec

In September 2025, the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) released a joint statement proposing a shift to 24/7 capital markets.

“Further expanding trading hours could better align US markets with the evolving reality of a global, always-on economy,” the statement said.

The legacy financial system relies on a complex web of intermediaries and does not operate nights, weekends or certain holidays, leaving investors and traders stuck in positions when the market is closed.

Blockchain technology removes intermediaries and functions around the clock, reducing settlement times, transaction costs and friction in cross-border commerce.

Real-world asset tokenization (RWA), the process of representing physical or traditional assets on a blockchain, is one of the tools that enables 24/7 capital markets across asset classes, including traditionally illiquid assets like real estate and collectibles.

Source: CoinTelegraph