BNY Adds Blockchain After Supporting BTC, ETH and USDC Custody

BNY is adding blockchain technology to its transfer agency business as the bank expands digital asset services beyond custody and stablecoin support.

BNY Moves Fund Records to Blockchain

BNY is launching a digital transfer agency platform to process fund transactions and maintain shareholder records on-chain. The system will create a shared ownership ledger for tokenized funds while the bank keeps its traditional transfer agency in place.

The bank safeguards more than $59 trillion in client assets and services about $8.6 trillion through its transfer agency business. The new platform aims to reduce repeated checks between intermediaries that support fund administration.

BNY Chief Product and Innovation Officer Carolyn Weinberg said the bank is modernizing a function behind fund transactions by bringing the “books and records onchain.” The platform will give asset managers a digital record of ownership for tokenized products.

The bank expects traditional systems to remain active for years. BNY Global Head of Asset Servicing Emily Portney said “trillions and trillions of dollars” in funds will continue using existing rails.

Tokenized Fund Rollout Starts With Major Clients

Baillie Gifford will become the first client to use the platform for a fully native U.K.-regulated tokenized fund. BNY’s Dreyfus division and BlackRock are also expected to use the same infrastructure for planned tokenized products.

The platform places BNY inside the growing market for tokenized funds. These products can hold traditional assets, while investor ownership is recorded through blockchain-based tokens.

BNY is also preparing tokenized U.S. Treasuries and pilot transactions on its private blockchain before the end of 2026. A client letter said the bank already executed after-hours Treasury transactions with stablecoin issuers earlier this year.

The bank expects blockchain records to support faster settlement and round-the-clock market operations. Shared records can also reduce manual reconciliation between banks, fund managers, custodians, and other service providers.

BNY Builds on BTC ETH and USDC Services

BNY has been expanding digital asset services for several years. The bank created its Digital Assets unit in February 2021 to support multi-asset custody and related infrastructure.

The bank launched Bitcoin and Ethereum custody services in October 2022. That made BNY one of the first large custodian banks to support custody for both assets.

BNY also expanded its work with Circle in June 2026 to support minting and burning for USDC. The move connected the bank more closely with stablecoin settlement and reserve operations.

In May, BNY announced a strategic collaboration with Finstreet Limited and ADI Foundation to offer crypto custody in the Abu Dhabi Global Market. The agreement added another regulated market to BNY’s digital asset push.

BNY’s blockchain transfer agency platform extends that strategy into fund administration. The bank is not replacing its older systems but adding new rails for tokenized funds and blockchain-based ownership records.

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