BNY Mellon recently rolled out a blockchain-based transfer agency platform that puts investment fund ownership records directly onchain. This marks a shift from tokenizing products to digitizing the core record-keeping that underpins fund management.
The new platform will initially support tokenized funds from Baillie Gifford, BlackRock, and BNY Dreyfus, enabling a shared digital ledger for ownership data and investor transactions. This approach aims to replace the fragmented, often duplicated databases maintained by fund managers, custodians, and administrators with a single, authoritative record accessible to all authorized parties.
Streamlining Fund Administration with Blockchain
Transfer agents traditionally handle investor records, process subscriptions and redemptions, update shareholder registers, and facilitate communication between funds and investors. BNY Mellon’s blockchain platform automates and centralizes these tasks, reducing reconciliation efforts and the risk of errors. The bank's transfer agency business already manages about $8.6 trillion across 7.6 million investor accounts, reflecting the scale of this innovation.
This rollout follows BNY’s recent moves into USDC services and crypto custody compliant with Europe’s MiCA regulation. By moving fund ownership records onto blockchain, BNY Mellon expects to modernize fund administration significantly, improving transparency and efficiency without abandoning its existing services.
This material is for informational purposes and does not constitute financial advice.
