The world’s largest custodian, BNY, is moving its $8.6 trillion transfer agency business to the blockchain. The move by the custody powerhouse, which holds $59 trillion in total assets, marks a tangible shift from conventional rails toward onchain ledgers, with major names like Baillie Gifford and BlackRock lining up as initial clients.
BNY’s transfer agency unit currently oversees 7.6 million client accounts. Through blockchain integration, BNY aims to establish a single ownership record capable of streamlining operating chains. Its primary goal is cutting out multiple intermediaries that historically added time and transaction costs. “We are modernizing the machinery behind every fund transaction by bringing the record book onchain,” said Carolyn Weinberg, Chief Product & Innovation Officer at BNY.
Attracting Major Players Without Shutting Down Legacy Systems
Baillie Gifford, an investment manager with $261 billion in assets under management, will be the first to trial the service. The firm is preparing what it describes as the first native tokenized fund fully licensed by UK regulators. Following this opening move, BlackRock and Dreyfus - BNY’s own cash management division - are expected to follow shortly to advance their fund issuance plans on the new infrastructure. Initial reporting on BNY’s move was first revealed by the Financial Times.
Despite its decisive push into Web3, BNY is not pulling the plug on its legacy infrastructure right away. Traditional recordkeeping systems will continue running in parallel alongside the blockchain. Emily Portney, Global Head of Asset Servicing at BNY, acknowledged that this phased approach is necessary, as trillions of dollars in client assets will remain on conventional systems for years to come.
When Will Wall Street Fully Switch Tracks?
BNY’s decision to bring its record books onchain validates projections from many market observers. Brickken CEO Edwin Mata estimates that Wall Street’s entire financial engine will operate fully on blockchain by 2030 at the latest. The migration signal grows even clearer as rival banks make their own moves. A consortium involving JPMorgan, Citi, and Bank of America is currently finalizing plans to build a shared tokenized deposit network, targeting a launch in the first half of 2027.
However, shifting the recordkeeping of billions of dollars also comes at a price. As ledgers move from banks’ closed servers to blockchain networks, the risk profile changes. The financial industry must now navigate new cyber threats, from security vulnerabilities in smart contract code to risks in cross-chain bridges. For the public, BNY’s move serves as tangible proof: blockchain rails once viewed with skepticism are now gradually being adopted to replace Wall Street’s core infrastructure.
Reported by CoinDesk.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
