BNY ventures into tokenized deposits, ICE joins to prepare for 24-hour stock market trading?

The Bank of New York Mellon (BNY) officially announces the launch of tokenized deposit services, becoming the latest example of the global banking industry’s deepening digital asset deployment. This service converts customer deposits into digital form on the blockchain, aiming to address the efficiency bottlenecks in fund transfers within traditional financial systems, especially in a 24/7 trading environment. Through collaborations with major institutions such as Intercontinental Exchange (ICE), Citadel Securities, and Ripple Prime, BNY is committed to leveraging blockchain technology to accelerate collateral management and margin settlement processes.

BNY’s Tokenized Deposits Technology Architecture and Liquidity Optimization

BNY’s tokenized deposits are essentially digital certificates of bank deposits on the blockchain, which, like traditional deposits, are liabilities of the bank and can accrue interest. This differs from stablecoins typically backed by cash or short-term government bonds in legal structure and risk profile. The bank emphasizes that the core value of this technology lies in enabling around-the-clock fund operations, breaking through the limitations of traditional banking hours. Through blockchain infrastructure, institutional clients can conduct payments, collateral adjustments, and margin trading more quickly, thereby improving capital efficiency and reducing risks associated with settlement delays.

BNY’s Strategic Partners and Market Deployment

As one of the world’s largest asset custodians, BNY manages or safekeeps assets totaling up to $57.8 trillion, making its digital transformation highly indicative of market trends. Currently, participating institutions or those interested in this service include market infrastructure and asset management leaders such as Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange; quantitative trading giant Citadel Securities; DRW Holdings; stablecoin issuer Circle; and asset management firm Baillie Gifford.

Programmable Finance and Industry Outlook

A key advantage of tokenized deposits is “programmability,” allowing transactions to automatically execute transfers or release collateral when specific preset conditions are met (e.g., loan repayment). Steve Kurz, Co-Head of Digital Assets at Galaxy Digital, pointed out that this will bring automation and 24/7 settlement into the core of banking systems. Additionally, as U.S. regulations around digital assets and stablecoins become clearer, traditional financial institutions developing blockchain applications within a compliant framework is becoming a trend. BNY’s move is not only to compete with JPMorgan’s JPM Coin but also to seize opportunities in the global financial infrastructure upgrade race.

ICE Partners with BNY to Prepare for 24/7 Stock Market Trading?

Jeffrey Sprecher, Chairman and CEO of ICE, emphasized during the earnings call that tokenization technology can promote higher trading volumes through “around-the-clock collateral management.” In financial markets, traders need to submit collateral (such as cash or securities) to guarantee transaction performance. If markets operate 24/7 but collateral management systems are limited to banking hours, it could lead to low capital efficiency or increased default risk. Therefore, ICE’s adoption of blockchain technology aims not only to extend trading hours but also to enable institutional investors to flexibly allocate funds at any time, reducing the costs of holding idle capital.

It appears that ICE is actively evaluating and planning for the possibility of 24/7 trading, especially within its NYSE-related operations. This is also a response to competition from emerging cryptocurrency exchanges and fintech companies offering after-hours trading services. As global investors’ demand for cross-time-zone trading increases, establishing a regulated, liquid, around-the-clock trading venue has become a strategic priority for ICE to maintain its leadership in the global market.

This article “BNY Enters Tokenized Deposits, ICE Prepares for 24/7 Stock Market Trading” first appeared on Chain News ABMedia.