BNY Mellon Goes Blockchain for Tokenized Funds Transfer Agency

BNY Mellon is expanding its transfer agency business to include blockchain-based record-keeping for fund transactions. The move is designed to support the growing demand for tokenized funds, which issue digital ownership records tied to underlying assets.

The bank's new system will create a single ownership ledger for tokenized funds, reducing the need for repeated reconciliation across intermediaries involved in fund administration. This could simplify and streamline the process of tracking ownership interests in these funds.

BNY Mellon is one of the largest custodians globally, managing over $59 trillion in assets under custody and administration. Its transfer agency work supports fund ownership records, investor accounts, and transaction processing across various asset management products.

The bank's blockchain-based transfer agency system will coexist with its existing infrastructure, allowing it to support both traditional and tokenized funds. This approach enables BNY Mellon to adapt to the evolving needs of the financial industry while maintaining continuity for clients.