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The Bank of New York Mellon (BNY), the world’s largest custodian bank by assets under custody, has officially launched a tokenized deposit service designed to modernize institutional cash settlement. The new system allows approved clients to convert traditional cash deposits into digital tokens on a private blockchain, enabling faster, more flexible, and “always-on” financial operations.
The initiative brings major crypto and fintech players such as Ripple and Circle into BNY’s digital infrastructure, signaling a deeper integration between traditional banking and blockchain-based financial services.
BNY Targets 24/7 Financial Markets With Tokenized Deposits
BNY’s new offering is built to support institutional clients that operate in increasingly global, real-time markets. Through the tokenized deposit system, clients can represent their cash balances as digital tokens on a private ledger while still maintaining traditional bank account records for regulatory and compliance purposes.
“Tokenized deposits provide us with the opportunity to extend our trusted bank deposits onto digital rails — enabling clients to operate with greater speed across collateral, margin, and payments, within a framework built for scale, resilience, and regulatory alignment,” said Carolyn Weinberg, BNY’s Chief Product and Innovation Officer.
The goal is to reduce settlement delays, particularly for margin management, collateral movements, and complex institutional transactions, which often face time-zone and banking-hour limitations in traditional systems.
Supporting the Shift Toward “Always-On” Markets
BNY emphasized that global financial markets are moving toward an always-on operating model, where asset transfers and liquidity management need to happen around the clock — not just during standard banking hours.
Institutional investors increasingly require instant access to funds to respond to:
Market volatility
Margin calls
Collateral adjustments
Cross-border payment needs
Tokenized deposits help address these demands by:
Reducing settlement friction
Enabling near-real-time transfers
Supporting programmable payments that execute automatically when predefined conditions are met
Despite the use of blockchain technology, BNY confirmed that all client balances remain recorded in its traditional banking systems to ensure regulatory reporting integrity and financial safety.
A Hybrid Model That Prioritizes Compliance
BNY’s approach combines blockchain efficiency with traditional banking safeguards. This hybrid structure ensures that speed and innovation do not come at the expense of compliance or risk management.
“Interoperability between these systems not only builds durable bridges between the real economy and the broader internet financial system, but also demonstrates that speed and new use cases do not come at the expense of safety and soundness expectations of the world’s leading financial institutions,” said Dante Disparte, Circle’s Chief Strategy Officer and Head of Global Policy and Operations.
This model reflects a growing trend where major banks adopt blockchain infrastructure while maintaining regulatory alignment.
Ripple Prime Among the First Users
Ripple Prime, a subsidiary of Ripple, is one of the first firms to utilize BNY’s tokenized deposit service. The partnership builds on an existing relationship, as BNY already serves as the primary custodian for the reserves backing Ripple’s RLUSD stablecoin.
By integrating with BNY’s digital ledger, Ripple Prime can:
Manage liquidity more efficiently
Represent cash balances on-chain
Settle transactions in near real time
“As more traditional financial institutions move into digital-native services in 2026, BNY is staying ahead of the curve, bringing digital assets directly into the banking system,” said Noel Kimmel, President of Ripple Prime.
Circle, Paxos, and Major Asset Managers Join the Platform
In addition to Ripple Prime and Circle, BNY confirmed that several other digital asset firms and traditional financial institutions are testing the platform, including:
Securitize
Talos
Paxos
WisdomTree
Invesco
This diverse group of participants highlights the growing institutional interest in blockchain-powered financial infrastructure.
What This Means for Institutional Finance
BNY’s tokenized deposit service represents a major step toward:
Faster settlement cycles
Improved liquidity management
24/7 operational capability
Strong regulatory compliance
Rather than replacing traditional banking, the system enhances it with digital efficiency, creating a bridge between legacy finance and blockchain technology.
Disclaimer:
This article is for informational purposes only and does not constitute financial or investment advice. Readers should conduct their own research before making any financial decisions.
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#BNY #Circle

#Circle gains regulatory approval in Abu Dhabi and partners with #LuLu Financial Holdings to enhance cross-border payments using #USDC , marking a significant step in its Middle East expansion.
Circle Secures Abu Dhabi Approval,
Circle, the issuer of the USDC stablecoin, has received in-principle approval (IPA) from the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM), marking a pivotal step in its strategic expansion into the Middle East.
This regulatory nod positions Circle to obtain a full Financial Services Permission (FSP) license, enabling it to operate as a regulated money services provider within the United Arab Emirates. Jeremy Allaire, Circle’s Co-Founder and CEO, emphasized that this development "advances our strategy to establish deep roots in markets embracing the onchain economy" and underscores the company's commitment to global stablecoin oversight.​
In tandem with its regulatory progress, Circle has announced a strategic partnership with LuLu Financial Holdings, a prominent financial services conglomerate in the Middle East. This collaboration aims to facilitate remittances and cross-border payments using USDC, Circle’s fully-reserved digital dollar. LuLuFin, operating across the Gulf Cooperation Council (GCC), Indian sub-continent, and APAC region, manages over $10 billion in annual transactions. The partnership will initially target payment corridors between the Middle East, Asia, and Europe, leveraging USDC to enhance liquidity, reduce volatility, and improve transaction speed and traceability. 
Circle's incorporation within the ADGM and its collaboration with LuLuFin align with the UAE's broader ambition to become a global hub for digital assets and blockchain innovation. The ADGM has been proactive in establishing a forward-thinking regulatory framework to attract leading digital asset firms. Arvind Ramamurthy, Chief of Market Development at ADGM, welcomed Circle, stating that their presence "will further strengthen ADGM’s position as a global financial powerhouse."
This move also complements Circle's recent partnership with Hub71, #AbuDhabi tech ecosystem, where they plan to collaborate on projects within ADGM’s digital regulatory sandbox. Circle will join Hub71’s digital assets group, sharing its expertise with a community of over 500 tech startups and investors.
As Circle continues to expand its global footprint, these developments signify a concerted effort to enhance financial inclusion and accessibility through regulated blockchain solutions, particularly in high-traffic remittance corridors.​
#AltcoinDigest

In a surprising move within the Web3 market, Ripple Labs made an offer to acquire Circle Internet Financial, one of the largest stablecoin issuers globally. According to anonymous sources cited by Bloomberg, the deal was valued between $4 billion and $5 billion.

This offer has sparked considerable debate within the crypto community, with analysts suggesting that Ripple’s intentions might go beyond simply eliminating a competitor. Many believe it could be part of a larger, more strategic move to strengthen Ripple’s position within both the crypto and stablecoin markets.
Upon closer examination, it seems Ripple’s potential acquisition of Circle could reveal a broader ambition to solidify its influence in the financial infrastructure of the Web3 ecosystem. This situation certainly raises questions about Ripple’s future direction and its long-term goals within the rapidly evolving crypto space.
An Offer Circle Could Definitely Refuse
Circle is now on the cusp of launching its initial public offering, having already filed with the U.S. Securities and Exchange Commission (SEC) to list its Class A shares on the NYSE. This marks a significant step for Circle, though it isn’t the company’s first attempt at going public. In 2022, Circle tried to go public via a SPAC deal valued at up to $9 billion, but the deal ultimately fell through.
In the past three years, Circle has seen explosive growth. Its flagship product, USDC, now boasts a market capitalization exceeding $60 billion – nearly three times its value in 2022. The company has also diversified its offerings with products like EURC, USYC, and payment APIs, expanded its licensing across multiple jurisdictions, and strengthened key partnerships with major players such as Coinbase, Binance, Visa, and MoneyGram.
Given Circle’s remarkable growth and increasing prominence, an offer of $5 billion now seems undervalued. Following Bloomberg’s initial report on the acquisition attempt, rumors surfaced suggesting Ripple CEO Brad Garlinghouse had raised the bid to $20 billion, though these claims were quickly debunked. A fake screenshot also circulated, allegedly showing Ripple Labs CTO David Schwartz announcing a $6 billion offer, but no credible evidence was found to support this statement.
Why Does Ripple Need Circle?
Ripple has been a major player in the crypto industry since the mid-2010s, initially growing by offering online payment solutions to banks and financial institutions. This helped make the XRP Ledger one of the world’s largest financial networks. However, recent developments suggest that Ripple may not be entirely satisfied with the pace of growth within this space, leading the company to explore new avenues.

With ample financial resources and influence, Ripple seems to have moved away from relying solely on organic growth, instead looking to scale through mergers and acquisitions. According to Forbes, Ripple may be shifting its strategy in this direction, focusing on expanding its presence by acquiring other companies rather than solely relying on internal growth.
Over the past few years, Ripple has made several acquisitions in both the crypto and traditional finance sectors. Among the most notable are Metaco and Hidden Road, which have enabled Ripple to diversify into custody and brokerage services, providing access to traditional liquidity and better integration with conventional financial markets.
One of Ripple’s more ambitious new ventures is its stablecoin, RLUSD. Launched in December 2024, RLUSD is a U.S. dollar-backed stablecoin supported by fiat reserves and U.S. Treasury bonds. It is designed to operate on both the XRP Ledger and the Ethereum network, enhancing its utility. However, with a market capitalization of just $317 million, RLUSD is far behind industry giants like USDC ($61 billion) and USDT ($149 billion).
While Ripple considers RLUSD’s launch a success, its slower adoption rate may not align with the company’s broader goals. As competition for institutional clients intensifies, crypto lawyer Bill Morgan suggests that the slow growth of RLUSD might be part of a broader strategy, potentially designed to facilitate an acquisition of Circle. Morgan posits that Ripple’s focus on gradually growing RLUSD could be the catalyst for the company’s recent efforts to acquire Circle.
Circle Doesn’t Need Ripple to Continue Its Growth
Despite challenges in 2022 and 2023, Circle has become one of the strongest Web3 companies worldwide, bolstering its position with solid financial performance. In its SEC S-1 filing, Circle revealed it generated $1.68 billion in revenue for 2024, with 99% of that income derived from interest on reserves, primarily composed of U.S. Treasury securities and repo agreements. While revenue dropped from $267.6 million in 2023 to $155.7 million, Circle has remained profitable for two consecutive years.
The company also reported a positive operating cash flow of $344.6 million and assets under management of $45.8 billion by year-end. In its IPO filing, Circle detailed a growth strategy aimed at diversifying its product offerings, expanding licenses globally, and strengthening partnerships with key players like Coinbase, Binance, Visa, and MoneyGram.
CEO Jeremy Allaire has consistently highlighted Circle’s advancements in product development, including the cross-chain transfer protocol (CCTP) and the growing adoption of EURC. Circle’s financials and strategic initiatives demonstrate its commitment to strengthening its market position. 
Rejecting Ripple’s acquisition offer aligns with this vision, as Circle is focused on enhancing its infrastructure and solidifying its role in the rapidly evolving digital finance landscape. Rather than merging with a competitor, Circle aims to expand its influence and lead the next phase of Web3 development.
The Bottom Line
Ripple’s interest in acquiring Circle aligns with its goal to lead the digital payments and assets sector. Circle is not just the issuer of USDC but also holds a significant position in the digital currency space, with a solid client base, international licenses, and strong regulatory ties. For Ripple, acquiring Circle could enhance its competitive edge in the market.
Acquiring Circle would boost Ripple’s role as a global provider of settlement infrastructure. With USDC’s $60 billion market cap and over $25 trillion in transaction volume, Ripple would gain access to Circle’s fintech integrations and technology, expanding its presence in digital payments and enhancing its ability to compete with other blockchain leaders.
However, such a major merger is complex and comes with no guarantee of success. Mergers often involve lengthy negotiations, especially in billion-dollar deals, and face intense regulatory scrutiny from U.S. and EU authorities. A failed example is Galaxy Digital’s attempt to acquire BitGo for $1.2 billion, which collapsed after nearly two years of talks.
Ripple’s pursuit of Circle appears to be part of a larger strategy to control key infrastructure in the crypto market. This acquisition could be a vital step in securing Ripple’s dominance in the rapidly growing digital currency ecosystem.
#Ripple #Circle #USDC
$USDC $XRP