BNY to bring transfer agency records onchain in blockchain push
BNY is launching a blockchain-based transfer agency platform as the bank expands its digital asset infrastructure and moves core financial records onchain.
Bank of New York Mellon (BNY), one of the world's largest custodian banks with over $50 trillion in assets under custody, is launching a blockchain-based transfer agency platform designed to move core financial records onchain. The initiative marks a significant expansion of the institution's digital asset infrastructure as it seeks to modernize traditional back-office operations.
Transfer agency functions — which include maintaining shareholder records, processing transactions, and managing investor communications — have historically relied on legacy systems prone to inefficiencies and reconciliation delays. By migrating these records to a blockchain infrastructure, BNY aims to improve data accuracy, reduce settlement friction, and provide real-time transparency across fund administration workflows.
The move reflects a broader trend among major financial institutions integrating distributed ledger technology into core operational processes rather than treating blockchain as a peripheral experiment. Institutions including JPMorgan, BlackRock, and Franklin Templeton have made similar pushes toward tokenized funds and onchain record-keeping in recent years, signaling growing institutional confidence in blockchain's utility for regulated financial services.
As BNY progresses with the platform's rollout, market observers will be watching whether the bank extends blockchain capabilities to other custodial and settlement services. Regulatory clarity around tokenized securities and onchain financial records will also be a key factor in determining the pace and scale of adoption across the broader asset management industry.
Source: Cointelegraph
