- BNY launched tokenized bank deposits for institutional clients on a permissioned blockchain on Friday.
- The onchain deposits are tokenized depositor claims or cash balances and will initially support collateral and margin needs.
- Announcement says the bank will issue tokens on an in-house permissioned network.
- Regulators proposed moving U.S. markets toward a 24/7 model, noting blockchain and tokenization can enable faster settlement and round-the-clock trading.
- The regulators also said onchain markets and tokenization may be more “viable” for some asset classes and that a “one-size-fits-all” approach may not work.
On Friday, BNY began offering tokenized bank deposits to institutional clients, issuing the tokens on an in-house permissioned blockchain to support collateral and margin requirements, according to the bank’s announcement. The launch aims to speed asset movement and reduce settlement friction for institutional use.
Tokenized bank deposits represent onchain cash balances or depositor claims against a bank and will initially be used to meet collateral and margin needs, with broader functionality planned. “As global financial markets shift towards an always-on operating model, institutions are seeking faster and more efficient ways to move assets — with greater settlement certainty, transparency, lower friction and capability to unlock liquidity,” the bank said in its announcement.
The move follows regulatory signals toward 24/7 trading. In September 2025, the SEC and CFTC issued a joint statement proposing expanded trading hours and noting that blockchain can help align markets with a global, always-on economy. “Further expanding trading hours could better align US markets with the evolving reality of a global, always-on economy,” the regulators wrote.
The agencies also noted that 24/7 onchain markets and tokenization are more “viable” for some asset classes than others and cautioned that a “one-size-fits-all” approach may not work, according to the same joint statement. Blockchain’s continuous operation and tokenized real-world assets are cited as tools that can reduce settlement times and friction across markets.
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