Amid a surge in real-world asset tokenization (RWA), BNY, a major global financial services company, has introduced tokenized deposits, further advancing its presence in the industry.
With the new initiative, the financial service company, which is also a custodian bank, brings bank deposits onto the blockchain, where institutional clients can benefit from them. In other words, BNY’s tokenized deposits are for institutional clients, and not for retail users.
In general, tokenized deposits allow institutional clients to move their deposits, such as USD, liabilities, and balances, into BNY client accounts.
For blockchain newbies, tokenized deposits mean any traditional bank deposits that are represented as digital tokens on a blockchain.
BNY’s tokenization goal aligns with the new initiative
As BNY executives said, the launch helps advance the bank’s “ambition to support programmable, on-chain cash for institutional market infrastructure.” The bank aims to bridge the gap between traditional and digital finance.
An official post by BNY read that global financial markets are shifting towards a complete operational mode. As such, institutions are going for instant and efficient methods to move traditional assets to on-chain/blockchain. As blockchain technology ensures transparency, certainty, and the smooth flow of assets, tokenized deposits will open more liquidity options.
At the moment, BNY’s tokenization process will include collateral and margin workflow, making the cash balances available as digital tokens on the blockchain. These digital entries are proof of ownership, indicating that the money remains with the bank, and clients can still claim it.
BNY’s tokenization leap is not a new deal
BNY has earlier dived into the tokenization realm, particularly through collaborations. It has earlier partnered with Securitize, a leading tokenization platform, for a tokenized loan investment fund. In this collaborative initiative, BNY provided custodial services.
Last year, the bank integrated with Goldman Sachs to leverage blockchain technology for the tokenization process, connecting the bank’s LiquidityDirect platform with Goldman Sachs’ GS DAP, the firm’s private blockchain.
BNY’s tokenization leap comes as RWA tokenization substantially surged in both market value and volume. In 2025, the overall market value of RWA tokenization reached nearly $30 billion. Tokenized silver, US Treasuries, and other assets have significantly contributed to the growth.
