BNY Mellon unveils blockchain transfer agency for funds
6.7 Banking BNY Mellon is launching a blockchain-based transfer agency for its $8.6T fund services, supporting clients like BlackRock and Baillie Gifford, while running traditional and blockchain systems in parallel.
BNY Mellon is introducing a blockchain-based transfer agency system for its fund services business, which manages around $8.6 trillion in assets and supports 7.6 million accounts. This new platform will establish a single on-chain register of fund ownership, aiming to reduce reliance on intermediaries, lower reconciliation costs, and enhance transparency and efficiency for asset managers and clients. Initial clients include Baillie Gifford, BlackRock, and Dreyfus. Notably, Baillie Gifford will launch the first fully native, UK-regulated tokenized fund using this system. Despite the innovation, BNY Mellon will continue to operate its traditional transfer agency system in parallel with the blockchain platform for the foreseeable future, due to ongoing cybersecurity and smart contract risks. This initiative is part of BNY Mellon's broader digital asset strategy and marks a significant step by a major financial institution to modernize core financial infrastructure through blockchain technology.
