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BNY Mellon moves transfer agency record-keeping onto blockchain
The bank’s blockchain transfer agency is aimed at serving clients managing $8.6 trillion across 7.6 million accounts, initially for tokenized funds.
Bank of New York Mellon is launching a blockchain-based version of its transfer agency business, shifting core record-keeping to support a single on-chain ownership ledger for tokenized funds. CoinDesk reports the effort is designed to reduce reliance on multiple intermediaries while modernizing the “books and records” behind fund transactions.
The bank expects the blockchain system to coexist with traditional rails for years due to ongoing cyber and smart-contract risks. BNY Mellon said it has more than $59 trillion in assets under custody and administration, and it currently services about $8.6 trillion across 7.6 million accounts.
BNY Mellon plans to start with clients including Baillie Gifford, along with BlackRock and BNY’s Dreyfus unit, for what is described as a first fully native U.K.-regulated tokenized fund and other planned tokenized products. The companies note that tokenized money-market and cash-management funds issue ownership interests as blockchain tokens.
CoinDesk also highlights that BlackRock, Franklin Templeton and other asset managers have launched tokenized money-market funds in recent years. The Financial Times reported the initiative as Wall Street builds infrastructure for tokenized funds.