Key Notes
- A Bloomberg report revealed that BNY Mellon is working on bringing tokenized deposits to its clients.
- BNY Mellon has about $55.8 trillion in AUM and records as much as $2.5 trillion in payments daily.
- It will now join the likes of Robinhood and Gemini, which already launched their tokenized stocks.
According to a recent Bloomberg report, the Bank of New York Mellon Corp. is allegedly planning to introduce blockchain-based tokenized deposits to its clients. This way, they can make payments using blockchain, aligning with the tokenization trend among major banks worldwide. If true, BNY Mellon’s move reflects the growing popularity and acceptance of Real World Asset (RWA) tokenization.
BNY Mellon to Use Blockchain For Faster and Efficient Payments
Traditional Finance (TradFi) organizations are gradually increasing their use of the technology that underpins digital assets for fund transfers. BNY Mellon is the latest financial giant to make a move with its exploration of tokenized deposits. As far back as 2023, the company had voiced its interest in pursuing certain initiatives, including tokenization, the use of distributed ledger technology, and digital cash.
The company is now looking to facilitate faster and efficient payments through blockchain technology for its clients. Currently, it records as much as $2.5 trillion in payments daily, with up to $55.8 trillion in Assets Under Management (AUM).
With this reputation, BNY Mellon may bring an unprecedented revolution to the world of RWA tokenization. Additionally, the transition to decentralized ledgers could enable the platform to settle transactions nearly instantly and operate continuously. This is in contrast with legacy correspondent networks.
At the same time, BNY Mellon would join the likes of Switzerland-based Digital Assets, Robinhood, and Gemini, which already launched their tokenized stocks across different regions.
BNY Mellon’s Journey in Crypto and Blockchain
BNY Mellon has made extensive participation in the blockchain space earlier. It has an active working relationship with a few top crypto firms, including San Francisco-based blockchain payments firm Ripple Labs Inc.
BNY Mellon is the official custody partner for Ripple’s USD-backed stablecoin dubbed RLUSD.
It also has investments in top cryptocurrency projects, such as BlackRock’s iShares Bitcoin Trust ETF (IBIT) and Grayscale’s Bitcoin Trust ETF (GBTC). The latest project is part of BNY Mellon’s plan to expand its crypto reach and modernize its infrastructure, which includes scaling real-time, instant, and cross-border payments.
In the long run, the goal is to enhance overall financial transfer methods by utilizing digital assets and blockchain technology.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
Source: https://www.coinspeaker.com/bny-mellon-blockchain-payments/