BNY targets $8.6 trillion transfer agency market on blockchain railsThe world’s largest custodian will keep its existing system while adding a digital ownership record for tokenized funds.The bank is launching a blockchain-based version of its transfer agency business, which services about $8.6 trillion in assets. (BNY/Press)
- Bank of New York Mellon is shifting its core transfer agency record-keeping onto blockchain to create a single on-chain ownership ledger and reduce reliance on intermediaries.
- The move will initially support clients including Baillie Gifford, BlackRock and BNY’s Dreyfus unit for what is described as the first fully native U.K.-regulated tokenized fund and other planned tokenized products.
- While BNY and other major banks are building blockchain-based infrastructure and tokenized deposit networks, the bank expects traditional systems to coexist for years amid ongoing cyber and smart-contract risks.
BNY, which has more than $59tn in assets under custody and administration, is moving one of its core record-keeping businesses onto blockchain as Wall Street builds the infrastructure for tokenized funds, the Financial Times reported Thursday.
“We think of BNY as modernizing a function that sits behind every single fund transaction by bringing the books and records onchain,” Carolyn Weinberg,
