BNY targets $8.6 trillion transfer agency market on blockchain rails
The world’s largest custodian will keep its existing system while adding a digital ownership record for tokenized funds.
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Summary
- Bank of New York Mellon is shifting its core transfer agency record-keeping onto blockchain to create a single on-chain ownership ledger and reduce reliance on intermediaries.
- The move will initially support clients including Baillie Gifford, BlackRock and BNY’s Dreyfus unit for what is described as the first fully native U.K.-regulated tokenized fund and other planned tokenized products.
- While BNY and other major banks are building blockchain-based infrastructure and tokenized deposit networks, the bank expects traditional systems to coexist for years amid ongoing cyber and smart-contract risks.
