BNY Mellon transfers $8.6 trillion fund business custody records to blockchain

According to CoinDesk, Bank of New York Mellon is migrating its core transfer agency records to the blockchain to create a single on-chain ownership ledger and reduce reliance on intermediaries.

Initially, this initiative will support clients such as Baillie Gifford, BlackRock, and Dreyfus under BNY, covering the first fully native, UK-regulated tokenized fund and other planned tokenized products. BNY and other large banks are building blockchain-based infrastructure and a tokenized deposit network.

The bank expects that traditional systems will continue to coexist in the coming years amid ongoing cybersecurity and smart contract risks.