BNY has introduced tokenized bank deposits for its institutional clients, marking a significant advancement in financial services. These deposits represent onchain cash balances and claims against the bank, and are facilitated through a proprietary permissioned blockchain network.
The initiative aims to enhance liquidity and streamline the movement of assets as financial institutions adapt to a rapidly evolving digital landscape. BNY emphasizes the need for greater settlement certainty and transparency, responding to the demands of an always-on global economy.
This development aligns with broader trends in the financial sector, where traditional banks are reconfiguring their infrastructures to support innovations like real-world asset tokenization. Additionally, a joint statement from the SEC and CFTC in September 2025 proposed a shift to 24/7 capital markets, highlighting the potential for blockchain technology to eliminate intermediaries and reduce costs.
As financial entities explore these advancements, the potential for onchain markets to operate continuously could fundamentally alter trading dynamics, particularly for traditionally illiquid assets.