The Bank of New York Mellon Corp. is testing tokenized deposits to revamp its payment network and utilize blockchain in global finance. Led by Carl Slabicki, the project aims to enable clients to make payments through a blockchain network with tokenized deposits, facilitating real-time global transactions worth $2.5 trillion daily.

Tokenized deposits are digital representations of customer deposits on a Blockchain network, allowing quick transfers for real-time settlement without intermediaries. BNY Mellon’s move can boost payment efficiency, overcoming legacy technology constraints in the financial system. This aligns with the bank’s broader blockchain strategy and collaboration with global financial institutions for real-time cross-border payments.

Over the past six months, BK shares rose 34.8%, outperforming the industry’s 26.2% growth. BNY Mellon currently holds a Zacks Rank #3 (Hold). HSBC and JPMorgan are also exploring tokenized deposits for real-time currency transfers and mainstream cryptocurrency adoption, respectively. These efforts aim to enhance compliance, security, and financial control in the digital age.

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Read more at Nasdaq: BNY Mellon Tests Tokenized Deposits to Facilitate $2.5T Daily Payments