BNY Mellon, one of the world's largest asset managers, has officially launched its tokenized deposit service for institutional clients. This new service allows institutions to convert their cash holdings into digital tokens that can be transferred and settled on a blockchain, offering a more efficient alternative to traditional payment rails.

This development marks a significant step in the integration of traditional financial infrastructure with blockchain technology. By tokenizing deposits, BNY Mellon aims to provide clients with enhanced speed and flexibility for managing their cash and liquidity.

Ripple Prime, the institutional arm of Ripple, has been named as one of the early adopters of the service. The integration will enable Ripple Prime to manage its cash liquidity with greater agility. Other notable early clients include Intercontinental Exchange (ICE), Citadel Securities, and DRW

Holdings, signaling strong interest from major players in both the crypto and traditional finance sectors. This move indicates a growing industry trend toward the tokenization of real-world assets by established financial institutions.