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BNY Launches Onchain Transfer Agency for Its $8.6 Trillion Fund Business
BNY Mellon announced it is launching an on‑chain transfer agency that will record fund transactions and investor ownership on a blockchain, with Baillie Gifford, BlackRock and BNY's Dreyfus unit slated as early users.
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What happened
BNY Mellon announced it is launching an on‑chain transfer agency that will record fund transactions and investor ownership on a blockchain, with Baillie Gifford, BlackRock and BNY’s Dreyfus unit slated as early users.
Confirmed
Global impact / market context
Putting fund transactions on a blockchain could cut settlement times and reduce paperwork, lowering operating costs for managers and making it easier for investors to track ownership in real time.
Confirmed
The fund industry, which manages about $8.6 trillion, is exploring blockchain to improve how transactions and ownership records are kept, aiming for faster, cheaper, and more transparent processing.
Confirmed
What to watch
- Adoption by other large asset managers will show whether the platform can become a standard for fund record‑keeping, potentially expanding its network effects. Analyst inference
- Regulatory responses to tokenized funds in the UK and US will affect how quickly similar products can be launched and marketed. Analyst inference
- The cost and speed savings reported by early users will influence other financial firms’ decisions to invest in blockchain‑based transfer agencies. Analyst inference