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BNY Mellon Launches Pilot for Blockchain-Based Deposits

BNY Mellon Launches Pilot for Blockchain-Based Deposits

BNY Mellon accelerates blockchain initiatives including real-world asset settlement and tokenized payments, redirecting $500 million from efficiency gains to digital assets and AI.

Summary

BNY Mellon has advanced several blockchain-related investments, with a focus on real-world asset settlement and tokenized payments, moving them forward to 2025. CEO Robin Vince clarified that the bank has no plans for a proprietary stablecoin but is focusing on strengthening market infrastructure. The bank has redirected $500 million in cost savings toward digital assets and AI without increasing overall expenses.

Terms & Concepts
  • Tokenized Payments: Digital payment systems using blockchain-based tokens to represent and transfer value, enabling faster and more transparent transactions.
  • Real-World Asset Settlement: The process of using blockchain technology to record and settle transactions involving physical or traditional financial assets.
  • Stablecoin: A cryptocurrency designed to maintain a stable value by being pegged to a reserve asset such as fiat currency.