BNY Mellon Shifts Transfer Agency Recordkeeping Onto Blockchain
BNY Mellon, one of the world's largest custodian banks, is planning to move its transfer agency recordkeeping onto a blockchain. This shift aims to reduce the reconciliation work typically associated with fund transactions and make it easier for parties involved in tokenized funds to verify ownership.
The Financial Times reported that BNY's initiative will modernize 'the books and records' that support transactions across investment funds by placing them onchain. The bank plans to launch a blockchain-based version of its transfer agency business, which maintains fund ownership records and processes investor activity.
BNY's move is part of its ongoing push into digital assets and follows its progress in Europe under the EU's Markets in Crypto-Assets (MiCA) framework. Early reported users include Baillie Gifford, which plans to use the platform for what it described as the first 'fully native' UK-regulated tokenized fund.
BNY reportedly oversees more than $59 trillion in assets under custody and administration, making this shift significant even if incremental. The bank has not publicly confirmed which blockchain network will support the new platform.