Key Insights:
- BNY Mellon is reportedly exploring tokenized deposits on blockchain for secure transactions.
- This move by the financial services firm reflects growing institutional interest in blockchain and crypto.
- A flurry of Wall Street players have recently shifted their focus towards the blockchain and crypto space.
The leading financial services provider, BNY Mellon, has caught the eyes of the traders with its latest push towards the blockchain space. The financial services firm is reportedly exploring the issuance of tokenized deposits to let clients make payments on-chain.
The development, first flagged by Bloomberg, highlights how Wall Street players and traditional banks are repositioning themselves to straddle both fiat and crypto domains.
The idea is that deposit balances held at BNY Mellon would be represented by digital tokens on a blockchain, effectively a digital claim on bank funds. It would allow clients to transact in token form while the bank still maintains oversight and traditional accounting.
Meanwhile, these plans come against a backdrop of growing institutional interest in the blockchain and crypto space. It’s worth noting that BNY already handles roughly $2.5 trillion in payments per day and serves as custodian for about $55.8 trillion in assets.
BNY Mellon Enters the Blockchain Space
Tokenisation is the name of the game and of late more institutional interest has developed in the space. This is not BNY’s first push into tokenization or into the blockchain market. In July 2025, BNY and Goldman Sachs announced a joint initiative to tokenize shares of money market funds (MMFs).
Under that model, investors could subscribe or redeem tokenized versions of funds via BNY’s LiquidityDirect platform, with Goldman’s blockchain (GS DAP) maintaining ownership records as “mirror tokens.”
In addition, in August 2025, BNY was appointed as the investment manager and custodian for OpenEden’s tokenized US Treasury fund. It marks another deeper integration in tokenized securities for the financial services firm.
Having said that, the latest development, as reported by Bloomberg, is lauded by the crypto market watchers, as a flurry of Wall Street players have recently entered the blockchain space.
In July 2025, the leading crypto exchange Coinbase partnered with PNC Bank to expand its crypto offerings.
Institutional Interest Driving Crypto Market Rally
The crypto and blockchain market came into the limelight since Donald Trump’s US Presidential election win. As President Trump continued to advocate for the crypto market and Bitcoin, many deemed that to be a potential catalyst for soaring crypto adoption.
Since then, a flurry of Wall Street players have actively shifted their focus towards the blockchain space, the latest being BNY Mellon.
In addition, many crypto firms have also successfully debuted in the US stock market, which includes Circle, Bullish, and others.
These developments have played a key role in sending the BTC price to a new all-time high on October 7.
The US Spot Bitcoin ETF further fuels optimism and reflects the soaring institutional interest in the crypto market.
Meanwhile, a flurry of known institutions like Grayscale, Bitwise, and others are also betting on the altcoin sector, as evidenced by the heating Altcoin ETF market.
Besides, the corporations are also exploring Bitcoin and other crypto treasuries, which reflects the shifting global interest towards the blockchain payment system.