BNY Brings Blockchain to Its $8.6 Trillion Transfer Agency Business

Bank of New York Mellon is moving one of its core record-keeping operations onto blockchain technology, aiming to modernize the transfer agency system that supports trillions of dollars in fund transactions worldwide.

Building a Single Ownership Ledger

BNY, which oversees more than $59 trillion in assets under custody and administration, plans to shift its transfer agency function, which services roughly $8.6 trillion across 7.6 million accounts, onto blockchain rails. The bank’s chief product and innovation officer described the move as modernizing a system that underpins every fund transaction by bringing records onchain. Officials said creating a single ownership ledger would reduce reliance on multiple intermediaries currently involved in fund administration.

Early Adopters Lined Up

Investment firm Baillie Gifford, which manages more than $261 billion in assets, is expected to be among the first users, applying the system to what the companies describe as the first fully UK-regulated tokenized fund. BlackRock and BNY’s own money-market business, Dreyfus, are also anticipated to use the new infrastructure for upcoming fund launches.

Traditional Systems Will Remain in Place

BNY emphasized that its existing transfer agency system will continue operating alongside the new blockchain-based version, since a large portion of fund assets will remain on traditional infrastructure for years to come. The bank acknowledged blockchain technology introduces its own risks, including vulnerabilities in smart contracts and network bridges, but believes a unified ownership record can reduce costly reconciliation work across fund administration.