Talos Joins BNY’s Tokenized Deposit Initiative to Support Real-Time, Always-On Settlement

BNY has announced the launch of a new tokenized deposit capability that allows institutional clients to interact with existing bank deposits using blockchain-based rails. The capability enables an on-chain, mirrored representation of client deposit balances on BNY’s Digital Assets platform.

Read BNY’s full announcement here.

What are tokenized deposits?

Tokenized deposits are digital representations of traditional demand deposits issued within the banking system. They are not a new form of money. Instead, they allow institutional clients to move and manage existing deposits using blockchain technology, while remaining fully integrated with regulated bank infrastructure.

BNY’s launch is part of a broader effort to support programmable, on-chain cash for institutional market infrastructure, with applications across treasury management, payments and margining.

BNY’s approach to on-chain cash for institutions

By supporting on-chain representations of cash, BNY aims to enable faster settlement, more efficient collateral movement and improved operational flexibility as markets extend beyond traditional trading hours.

Potential institutional use cases include book-to-book transfers across different legal entities, transfers between BNY clients, and workflows that bridge traditional financial infrastructure with digital asset markets. Tokenized deposits can also act as a foundation for broader connectivity to BNY services as on-chain activity expands.

The importance of 24/7 settlement for institutions

For institutional market participants, traditional banking cutoffs remain a structural constraint. Cash and collateral often cannot be moved when markets are open, and capital can become trapped during periods of volatility. In digital asset markets that trade around the clock, these limitations increase operational risk and reduce capital efficiency.

Tokenized deposits help address this challenge by enabling real-time cash movement aligned with how digital asset markets already function. When paired with programmable workflows, on-chain cash supports more responsive margining, collateral management and risk controls.

Talos is proud to support this initiative. Anton Katz, CEO and Co-Founder of Talos, said:

“Talos provides a comprehensive platform for the world’s largest financial institutions to manage the entire digital asset investment lifecycle. For institutions trading digital assets, 24/7 settlement is critical to improving liquidity management and operational efficiency. That’s why we’re excited to join BNY as we look to enable real-time, always-on cash movement.”

Connecting traditional and digital market infrastructure

Talos provides the institutional-grade connectivity and workflow infrastructure that allows firms to access these capabilities safely and at scale. By integrating trading venues, liquidity providers, custodians and banking partners into a single platform, Talos helps institutions manage execution, settlement and post-trade processes across traditional and digital rails.

BNY’s tokenized deposit capability is available to clients onboarded with the bank.

Looking ahead

As tokenized deposits and tokenized securities increasingly converge, real-time settlement will become a foundational requirement for institutional market infrastructure. Talos looks forward to working with BNY and ecosystem partners to support this transition and help institutions operate efficiently in an always-on market environment.