BNY Mellon has introduced tokenized deposits on its Digital Assets platform, allowing institutional clients to use on-chain representations of their deposit balances. This new system, which operates on a private blockchain, aims to enhance collateral and margin workflows by enabling faster, programmable cash movement with settlement certainty. Early adopters include Citadel Securities, ICE, DRW, Ripple Prime, and Circle, as the financial industry moves towards 24/7 operations. The tokenized deposits mirror existing client bank balances while remaining regulated bank liabilities, ensuring compliance with traditional banking standards. BNY's platform supports both traditional and digital market infrastructure connections, focusing on institutional use cases rather than retail payments. The initiative is designed to improve liquidity efficiency and support programmable settlement, keeping funds within regulated banking systems. BNY's Chief Product and Innovation Officer, Carolyn Weinberg, highlighted that tokenized deposits extend trusted bank money onto digital rails, with future versions potentially enabling near real-time cash movement. This launch marks a shift from internal testing to production, as BNY aims to address payment bottlenecks and prepare for continuous market operations.