BNY is introducing a blockchain-based version of its transfer agency business, moving fund ownership records and investor transaction processing onto a shared digital ledger. The initiative targets the operational backbone of investment funds and positions the bank to support growing demand for tokenized products without dismantling its existing infrastructure.

The New York-based institution oversees more than $59 trillion in assets under custody and administration. Its transfer agency services currently cover approximately $8.6 trillion across 7.6 million investor accounts. Rather than replacing those systems, BNY will operate the new digital platform in parallel with its conventional transfer agency operations.

Modernizing Core Fund Recordkeeping

Transfer agents maintain official shareholder registers, process subscriptions and redemptions, update ownership details and facilitate communication between funds and investors. In traditional setups these records are often held in separate systems operated by managers, custodians and administrators, requiring repeated reconciliation.

The blockchain platform is designed to create a single shared source of ownership information accessible to authorized participants. By placing the books and records on-chain, BNY aims to cut the need for multiple intermediaries to maintain parallel databases and to support faster settlement along with continuous market operations.

Emily Portney, global head of asset servicing, noted that large volumes of funds will remain on existing rails for the foreseeable future. The bank has stated that trillions of dollars in assets will continue to operate under traditional arrangements even as the digital service rolls out.

Early Adoption by Major Asset Managers

Baillie Gifford, the Edinburgh-based manager with roughly $261 billion in assets under management, is set to become the first client to use the platform for what the parties describe as the first fully native United Kingdom-regulated tokenized fund. BlackRock and BNY’s Dreyfus money-market and cash-management business are also expected to deploy the infrastructure for planned tokenized offerings.

Tokenized funds hold conventional assets while representing investor ownership through blockchain-based tokens. The shared ledger is intended to give all relevant parties a common, up-to-date view of holdings and transactions, reducing operational friction that arises when records diverge across institutions.

Part of Broader Digital Asset Expansion

The transfer agency launch builds on several earlier steps by BNY into digital assets. The bank established a dedicated Digital Assets unit in 2021 and began offering Bitcoin and Ethereum custody services in 2022. In June 2026 it expanded support for Circle’s USDC, adding minting, burning, custody and transfer capabilities on its platform. It has also secured Markets in Crypto-Assets authorization for its Belgian subsidiary and entered a collaboration aimed at providing regulated crypto custody services in Abu Dhabi.

BNY has not disclosed the specific blockchain network that will underpin the new transfer agency platform. The bank expects traditional systems and the on-chain service to coexist for years, acknowledging both the scale of existing fund activity and the operational and security considerations that accompany any new technology layer.

The move places one of the largest custodians at the center of efforts to apply blockchain to institutional fund administration. Asset managers seeking to issue tokenized products will gain access to a digital ownership record maintained by a systemically important financial institution, while the parallel traditional service ensures continuity for the majority of current fund business.