BNY Mellon launches tokenized deposit service with Ripple Prime and Circle

Beincrypto reports BNY Mellon has launched a tokenized deposit service that allows institutional clients to convert cash into digital tokens on a private blockchain, and the platform is being tested by major crypto and financial firms including Ripple Prime and Circle. The bank said the hybrid structure keeps deposits recorded in its traditional ledgers while using blockchain rails to add speed, programmability, and interoperability.

Carolyn Weinberg, BNY’s Chief Product and Innovation Officer, said, "Tokenized deposits provide us with the opportunity to extend our trusted bank deposits onto digital rails — enabling clients to operate with greater speed across collateral, margin, and payments, within a framework built for scale, resilience, and regulatory alignment." BNY described the move as aiming to modernize infrastructure and enable 24/7 settlement for complex transactions, reducing operational delays and enabling programmable payments.

Ripple Prime is among the first to utilize the service, deepening an existing relationship in which BNY serves as primary custodian for reserves backing Ripple’s RLUSD stablecoin. BNY also named early participants testing the platform, including Securitize, Talos, Paxos, WisdomTree and Invesco, and emphasized that client balances remain recorded in its traditional systems to ensure regulatory reporting integrity.

Key Topics

Crypto, Bny Mellon, Ripple Prime, Circle, Tokenized Deposits, Rlusd