BNY Mellon Deploys Blockchain System for Tokenized Funds
BNY Mellon, the world's largest bank for asset custody services, has launched a blockchain-powered system to document ownership of shares in investment funds. The new digital service will be used alongside the traditional system to keep track of fund ownership records across $8.6 trillion in assets and 7.6 million accounts.
The transfer agency division at BNY Mellon will maintain ownership records on blockchain, giving asset managers, banks, and other participants access to the same ownership record, reducing the need for repeated comparisons between separate databases.
The system allows the issuing and management of fund share tokens on public blockchains as well as managing authoritative records off-chain. It also enables purchases and redemptions in both fiat and stablecoins.