BNY Mellon Launches Tokenized Deposit Service with Ripple and Kanton Participation

BNY Mellon, the world's largest custodian bank, announced on the 9th that it has launched a tokenized deposit service for institutional investors. This service creates a blockchain-based digital representation of customer deposits held by the bank. BNY creates on-chain digital ledger entries representing the existing demand deposit claims of customers, thereby enhancing digital cash functionalities. Tokenized deposits are direct interest-bearing liabilities of the issuing bank, distinct from stablecoins. BNY anticipates the use of these deposits for collateral and margin trading, with programmable features that automate settlements and payments...