BNY Launches On-Chain Transfer Agency for $8.6 Trillion Fund Business
Bank of New York Mellon (BNY) is launching an on-chain transfer agency that will record fund transactions and investor ownership. The platform, which will cover $8.6 trillion across 7.6 million investor accounts, is expected to be used by Baillie Gifford, Blackrock, and BNY's Dreyfus unit.
The digital transfer agent is designed to create a shared record of ownership, reducing duplication and shortening settlement times. Carolyn Weinberg, BNY's chief product and innovation officer, said the technology could transform how financial markets process transactions.
BNY will keep its traditional system running alongside the new service while institutions test blockchain settlement and compliance. The move reflects Wall Street's growing interest in tokenization, with asset managers hoping blockchain can make fund shares easier to issue, transfer, and settle without changing the underlying investment structure.