BNY targets $8.6 trillion transfer agency market on blockchain rails
BNY is modernizing its transfer agency services by migrating records to a blockchain-based ledger to improve efficiency and transparency. The bank plans to support tokenized funds for major clients like BlackRock and Baillie Gifford while maintaining traditional systems.
Why it matters
This move signals a major shift in institutional finance toward blockchain infrastructure, potentially reducing reliance on intermediaries in the $8.6 trillion asset management market.
"We think of BNY as modernizing a function that sits behind every single fund transaction by bringing the books and records onchain," Carolyn Weinberg, chief product and innovation officer at the 242-year-old financial services giant.
BNY, which services about $8.6 trillion in assets across 7.6 million accounts, said moving its transfer agency onto blockchain would create a single record of ownership, cutting out the need for multiple intermediaries.
"We fully recognize you've got trillions and trillions of dollars' worth of funds that... will continue to exist on traditional rails," said Emily Portney, BNY's global head of asset servicing, the bank's largest business.
BNY did not immediately respond to a CoinDesk request for further information.
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