BNY Mellon is stepping into the future with a blockchain-based upgrade to its transfer agency services, which currently handle a staggering $8.6 trillion in assets spanning 7.6 million accounts. This move positions the bank, custodian of over $59 trillion in assets, to streamline record-keeping for fund transactions by creating a single, digital ledger on the blockchain.
Carolyn Weinberg, BNY’s chief product and innovation officer, explained the initiative as putting "the books and records onchain," aiming to cut down on repetitive reconciliation work among intermediaries that manage fund administration. The new system is tailored to support tokenized funds investment vehicles that issue ownership as blockchain tokens but still hold traditional assets like cash or short-term debt.
Baillie Gifford, managing upwards of $261 billion, will be among the first to use this blockchain transfer agency for a fully native UK-regulated tokenized fund, marking a milestone for both the asset manager and BNY’s platform. BlackRock and Dreyfus, linked to BNY’s money-market and cash management operations, are also lined up to adopt the service for their upcoming funds, reflecting growing interest in tokenized money-market funds and other onchain products.
Despite the blockchain overlay, BNY Mellon isn’t planning to ditch its conventional systems anytime soon. Emily Portney, the bank’s global head of asset servicing, highlighted that trillions in assets will continue to move through traditional channels. The blockchain solution complements existing infrastructure rather than replacing it, aiming to enhance transparency and efficiency without disruption.
The rollout arrives as Wall Street continues to build out infrastructure supporting tokenized funds, a trend that could redefine how fund ownership is tracked and managed.
This material is for informational purposes and does not constitute financial advice.
