Key facts
- BNY Mellon is migrating its transfer agency business to a blockchain-based system.
- The transfer agency business handles approximately $8.6 trillion in assets.
- The goal is to create a unified on-chain ownership ledger.
- The initiative aims to reduce reliance on intermediaries.
- The system will initially support tokenized funds.
- Clients like Baillie Gifford and BlackRock will be supported by the new system.
Bank of New York Mellon (BNY Mellon) is undertaking a significant migration of its transfer agency business to a blockchain-based system. This division currently oversees approximately $8.6 trillion in assets. The primary objective of this transition is to create a unified on-chain ownership ledger. By establishing this ledger, BNY Mellon aims to reduce its reliance on traditional intermediaries in the transfer agency process. The new system is designed to initially support tokenized funds, catering to clients such as Baillie Gifford and BlackRock. This strategic move by BNY Mellon signifies a substantial adoption of blockchain technology within the established financial sector, particularly in the complex and high-value transfer agency market.