BNY, the world’s largest custodian bank, is launching a digital version of its transfer agency business. This new unit utilizes blockchain technology to process trades and maintain ownership records. The bank currently services approximately $8.6 trillion in assets. These assets are held across 7.6 million accounts.
BNY will continue to operate its traditional transfer agent alongside this new digital arm. The adoption of blockchain creates a single, universal ledger for share ownership. This technology potentially reduces transaction settlement times and enables 24/7 operations. This initiative by the 242-year-old institution follows similar moves by BlackRock and Franklin Templeton. The project further integrates the traditional financial system with the digital-asset ecosystem.