BNY Mellon, the world’s largest custodial bank with $55.8 trillion in assets under custody, is testing tokenized deposits to modernize its payment infrastructure. The pilot seeks to enable near-instant settlement and lower transaction costs by processing deposits over blockchain networks. Carl Slabicki from BNY Mellon stated the technology could help banks overcome legacy constraints and enhance liquidity management. The bank, which handles about $2.5 trillion in daily payments, joins institutions like JPMorgan, which launched its JPMD token, and European banks developing MiCA-compliant euro stablecoins. Additionally, BNY Mellon recently collaborated with Goldman Sachs on tokenized money market funds.