BNY Introduces Blockchain to $59 Trillion Asset Network...Tokenized Funds Imminent

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BNY is introducing blockchain into its $59 trillion asset management network, going beyond custody of Bitcoin (BTC), Ethereum (ETH), and USDC.

According to crypto media outlet Coingape on July 29 (local time), BNY is launching a digital transfer agency platform that will process fund transactions and manage shareholder registers on the blockchain. It will record ownership information of tokenized funds on a shared ledger while continuing to operate the existing transfer agency system.

Client assets protected by BNY exceed $59 trillion. Assets managed through its transfer agency business also amount to approximately $8.6 trillion. The new platform focuses on reducing the repetitive verification of the same information by institutions involved in fund management. Carolyn Weinberg, BNY's Chief Product Innovation Officer, stated, “We are moving ledgers and records on-chain.”

The existing financial system will not disappear immediately. Emily Portney, BNY's Global Head of Asset Services, said, “Trillions and trillions of dollars in funds will continue to use the existing financial network.” The plan is to operate blockchain-based ledgers and traditional financial networks in parallel for a long period.

Baillie Gifford will be the first client to apply the new platform to fully tokenized funds compliant with UK regulations. BNY affiliates Dreyfus and BlackRock are also expected to use the same infrastructure for their planned tokenization products. BNY also plans to conduct pilot trades of tokenized US Treasury bonds on its own blockchain by the end of 2026. Earlier this year, it already conducted US Treasury bond transactions with stablecoin issuers after regular trading hours.

BNY established its digital asset division in February 2021 and launched Bitcoin and Ethereum custody services in October 2022. In June 2026, it expanded its partnership with Circle to support USDC issuance and burning. The new transfer agency platform is a step to expand its digital asset strategy, which began with cryptocurrency custody and stablecoin support, to tokenized fund management.

[Article Key Summary]

-BNY is adding a blockchain-based transfer agency platform to its client asset management network, which exceeds $59 trillion.

-Baillie Gifford is participating as the first client, and BlackRock and Dreyfus are also expected to utilize this infrastructure for their tokenized products.

-BNY is expanding its business scope to tokenized funds and US Treasury bonds, following Bitcoin and Ethereum custody and USDC support.

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