the world's largest custodian bank, Bank of New York (BNY), has taken its first step towards tokenization by offering institutional clients the ability to settle bank deposits on the blockchain.

According to a statement released on Friday, this Wall Street giant (managing nearly $58 trillion in assets) is launching a platform that reflects customer balances on a private blockchain to support faster settlement and liquidity management.

"Tokenized deposits give us the opportunity to extend trusted bank deposits to digital channels—enabling clients to process collateral, margin, and payments faster within a framework built for scale, resilience, and regulatory consistency," said Carolyn Weinberg, Chief Product and Innovation Officer at Bank of New York, in the press release.