BNY, a financial services company with roots in one of the oldest financial institutions in the United States, launched tokenized bank deposits for its institutional clients on Friday.
Tokenized bank deposits are onchain cash balances or depositors’ claims against the bank. According to an. BNY will issue tokenized bank deposits on an internal permissioned blockchain network announcement from the company.
Onchain deposits will be used to support collateral and margin requirements, and additional features will be made available in the future, BNY said, adding:
“As global financial markets shift towards an always-on operating model, institutions are looking for faster and more efficient ways to move assets – providing greater settlement certainty, transparency, reduced friction and the ability to unlock liquidity.”
BNY’s move is the latest blockchain development from a major financial institution, as banks and established time-honored finance players overhaul legacy financial infrastructure to meet the demands of the digital age.
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The SEC proposes a shift to capital markets that are always vigorous
In September 2025, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued a joint statement proposing a transition to 24/7 capital markets.
“Further extending trading hours could better adapt U.S. markets to the changing reality of a global, always-on economy,” the statement reads. he said.
The legacy financial system relies on a intricate network of intermediaries and does not operate at night, on weekends or on some holidays, leaving investors and traders stuck in positions when the market is closed.
Blockchain technology eliminates intermediaries and operates around the clock, reducing settlement times, transaction costs and friction in cross-border trade.
Real-world asset tokenization (RWA), the process of representing physical or time-honored assets on a blockchain, is one of the tools that enable capital markets to function 24/7 for all asset classes, including traditionally illiquid assets such as real estate and collectibles.
The SEC and CFTC acknowledged that 24/7 onchain markets and tokenization are more “profitable” for some asset classes rather than others, adding that a one-size-fits-all approach to always-on markets may not work.
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