Ripple Supports Bank of New York’s Move Towards Tokenized Banking

BNY Seeks to Address the ‘Always On’ Market with New Offering

The service offers BNY’s institutional clients the ability to transform traditional cash deposits into digital tokens on a private ledger.

“Tokenized deposits present an opportunity to extend trusted bank deposits to digital rails, enabling our clients to operate more swiftly in managing collateral, margins, and payments—all within a framework designed for scale, resilience, and compliance,” stated Carolyn Weinberg, BNY’s Chief Product and Innovation Officer.

This initiative aims to facilitate 24/7 transaction settlements and modernize the underlying financial infrastructure. This includes aspects like margin management and collateral transfers, which often encounter delays in conventional banking environments.

BNY emphasizes that this offering is aligned with the global transition to an “always on” operating model within financial markets.

Institutional investors now increasingly require instantaneous asset movement to leverage market opportunities, especially when faced with margin calls outside regular banking hours. The urgency of these scenarios—well, it’s quite real.

By reducing payment friction, tokenized deposits meet these demands. They also allow for programmable payments, where transactions can occur automatically under specific conditions.

It’s important to note that even with this digital interface, customer balances are still managed within traditional systems, ensuring the accuracy of regulatory reporting. This hybrid model allows banks to leverage blockchain benefits while adhering to the safety and compliance standards typically expected of global financial institutions.

“Creating interoperability between these systems builds a robust bridge between the real economy and the wider Internet financial system. Moreover, it demonstrates that speed and innovative applications can coexist with the safety expectations of major financial entities,” explained Dante Disparte from Circle.

Ripple Prime, a division of Ripple, was among the first to utilize this service, further strengthening their existing partnership with BNY, which already acts as the main custodian for Ripple’s RLUSD stablecoin reserves. With BNY’s digital ledger integration, Ripple Prime can manage cash liquidity more adeptly and display balances on-chain for near-instant settlement.

“As traditional financial institutions increasingly shift to digital-first services in 2026, BNY is leading the charge, integrating digital assets directly into the banking ecosystem,” noted Noel Kimmel, president of Ripple Prime.

Alongside Ripple Prime and Circle, BNY has also enlisted other early testers for the platform, including digital asset firms like Securitize, Talos, and Paxos, along with traditional asset managers such as WisdomTree and Invesco.