BNY Mellon Shifts Trillion-Dollar Fund Operations to Blockchain

BNY Mellon, the world's largest custodian bank, has started moving its fund administration operations to blockchain technology. This move will cover assets worth $8.6 trillion, according to recent reports.

The transfer agency business of BNY Mellon manages investor ownership stakes and transaction records for over $8.6 trillion in assets across 7.6 million accounts. By shifting these operations to blockchain infrastructure, the bank aims to modernize its ledgers and records, creating a single ownership record and cutting costs tied to reconciliation and settlement.

Carolyn Weinberg, BNY's chief product and innovation officer, stated that this initiative is meant to move all fund transactions onto blockchain. The bank will continue to operate its existing systems in parallel, with Emily Portney, global head of asset servicing, noting that funds worth trillions of dollars will remain on traditional financial networks.

BNY Mellon's use of blockchain technology is part of a broader trend among Wall Street banks. JPMorgan, Citigroup, and Bank of America plan to build tokenized deposit networks by the first half of next year to help prevent deposit outflows as the stablecoin industry grows.