BNY has rolled out a new tokenized deposit service, marking another step by a major U.S. bank to bring blockchain functionality into core financial operations.
The service went live on January 9, 2026, with Ripple Prime among the first participants.
The offering creates an on-chain, digital representation of existing client deposits held at BNY.
Those deposits can then be transferred over blockchain networks and used for collateral management, margin trading, and faster payments. The structure is designed to support near-instant settlement and move clients closer to 24/7 operational capability.
ANNOUNCEMENT: BNY selected to serve as the primary reserve custodian of @Ripple’s enterprise-grade stablecoin, Ripple USD (#RLUSD).
#BNY and Ripple are jointly committed to paving the way for digital asset adoption at institutional scale and together are helping to bridge the… pic.twitter.com/RjyDyBj0Qk— BNY (@BNYglobal) July 9, 2025
Ripple Prime Joins as Early Adopter
Ripple Prime, Ripple’s prime brokerage arm, is using the new service for cash flow management and liquidity optimization. Noel Kimmel, president of Ripple Prime, said the collaboration helps connect digital asset activity directly with the traditional banking system, reducing friction between on-chain and off-chain capital.
The participation positions Ripple Prime as one of the first crypto-focused firms to actively deploy tokenized bank deposits for operational use rather than experimentation.
Broad Institutional Participation
BNY said the initial user group extends well beyond crypto-native firms. Early participants include Intercontinental Exchange, Citadel Securities, DRW Holdings, Baillie Gifford, and Circle.
The mix of traditional financial institutions and digital asset firms signals that tokenized deposits are being positioned as shared infrastructure rather than a niche crypto product.
Builds on Existing Ripple Relationship
The launch also builds on an earlier collaboration between BNY and Ripple. In July 2025, BNY was named the primary custodian for the reserves backing Ripple’s enterprise-grade stablecoin, RLUSD. The new tokenized deposit service extends that relationship from custody into active liquidity and settlement workflows.
Part of a Wider Banking Shift
BNY’s move mirrors similar initiatives by other global banks exploring blockchain-based settlement to overcome legacy system constraints. Institutions such as JPMorgan and HSBC have launched comparable projects aimed at improving speed, efficiency, and availability within traditional financial services.
With tokenized deposits now live and in use by major market participants, the line between conventional banking infrastructure and blockchain-based settlement continues to narrow.
