BNY launches blockchain transfer agency for tokenised funds

BNY has launched a blockchain-based Digital Transfer Agency to record and service tokenised funds for a selection of clients in the United States and the United Kingdom, including BlackRock, Baillie Gifford and BNY Investments Dreyfus.

The service uses on-chain record keeping to register legal title and economic interest in funds that are issued directly on a blockchain. It is intended for funds created natively on distributed ledgers rather than for mirror-token or “digital twin” setups where the legal register remains off-chain.

For issuers that place legal ownership on-chain from inception, BNY’s system keeps books and records on the ledger so transactions and holdings appear in a single record. The platform will support on-chain asset mobility and peer-to-peer transfers, and it will accept subscriptions and redemptions in both fiat currencies and stablecoins.

BNY announced that flows will be managed with mint and burn capabilities within its ecosystem, creating or removing tokenised fund units to reflect purchases and redemptions. The service combines traditional transfer agency tasks, such as maintaining investor registers, processing transactions and handling corporate actions, with blockchain interoperability and smart-contract execution.

The Digital Transfer Agency is rolling out initially to a group of US and UK issuers. BNY will operate the digital service alongside its conventional transfer agent business, which currently services about $8.6 trillion in assets across more than 7.6 million accounts.

Carolyn Weinberg, BNY’s chief product and innovation officer, described the capabilities as “the next evolution of fund servicing, combining the same operational rigor, transparency and trust of traditional services with digital markets interoperability.”

Transfer agents carry out record-keeping, process subscriptions and redemptions, and support regulatory reporting. In tokenised fund structures where legal title is on-chain, those tasks are executed through blockchain records and smart contracts rather than by separate back-office reconciliations between a ledger and an off-chain register.

BNY did not disclose a wider timetable for a full market rollout or specify regulatory approvals tied to the Digital Transfer Agency.