BNY Launches Digital Transfer Agency to Support Digital Native Funds

The Bank of New York Mellon Corporation (BNY) has launched its Digital Transfer Agency (Digital TA), a new platform designed to manage investments for digital native funds. This platform will enable tokenized, sold, and traded assets to be custodied on a single global base.

BNY's Digital TA is intended to support the lifecycle management of both traditional and digital funds across multiple jurisdictions and blockchain systems. It will also facilitate the application and redemption of fund shares using fiat currencies or stablecoins.

The new platform aims to integrate tokenization, sales, and custodianship, providing a comprehensive solution for digital native funds. BNY has stated that this service is not meant to replace traditional systems but rather coexist with them.

BNY's Digital TA will initially be available to customers in the US and UK, with plans to expand its reach and customer base in the future. The company has named Baillie Gifford as one of the initial issuers using this platform, which is responsible for a dollar-denominated fund called Baillie Gifford Enhanced Yield Fund (BAGEY).

BAGEY is built on both Ethereum and Solana blockchains, allowing investors to hold shares directly in tokenized form. This marks the first fully native UK-regulated tokenized fund offering.