Key facts
- BNY Mellon is launching a digital transfer agency platform to process fund transactions and maintain shareholder records on-chain.
- The new platform aims to reduce repeated checks between intermediaries that support fund administration.
- Baillie Gifford will be the first client to use the platform for a fully native U.K.-regulated tokenized fund.
- BNY Mellon is preparing tokenized U.S. Treasuries and pilot transactions on its private blockchain before the end of 2026.
- The bank launched Bitcoin and Ethereum custody services in October 2022.
- BNY Mellon expanded its work with Circle to support minting and burning for USDC.
BNY Mellon is expanding its digital asset services by launching a new platform that will process fund transactions and maintain shareholder records on the blockchain. This initiative moves beyond the bank's existing custody services for cryptocurrencies like Bitcoin and Ethereum, and its support for stablecoins such as USDC.
The digital transfer agency platform aims to create a shared ownership ledger for tokenized funds, reducing the need for repeated checks among intermediaries involved in fund administration. Carolyn Weinberg, Chief Product and Innovation Officer at BNY Mellon, stated that the bank is modernizing this function by bringing "books and records onchain," providing asset managers with a digital record of ownership for tokenized products.
While traditional systems will remain active, BNY Mellon is positioning itself within the growing market for tokenized funds, which can represent traditional assets recorded via blockchain-based tokens. Baillie Gifford will be the first client to utilize the platform for a U.K.-regulated tokenized fund. BNY Mellon's Dreyfus division and BlackRock are also slated to use the infrastructure for their upcoming tokenized products.
Furthermore, BNY Mellon is preparing to pilot tokenized U.S. Treasuries on its private blockchain before the end of 2026. The bank has previously engaged in after-hours Treasury transactions with stablecoin issuers. The adoption of blockchain records is expected to facilitate faster settlement and enable round-the-clock market operations, while also reducing manual reconciliation efforts among financial institutions.