BNY Launches Digital Transfer Agency Infrastructure for Tokenized Funds
- Tokenization Insight
- 7 days ago
- 2 min read
BNY has launched Digital Transfer Agency capabilities supporting digitally native funds across US and UK for select clients.
The significance is not simply that BNY can tokenize fund shares.
It is that the legal representation of a fund’s ownership records can now exist onchain, supported by the same institution responsible for the regulated transfer-agency infrastructure behind them.
BNY is one of the world’s largest asset-servicing institutions, with $59.4 trillion in assets under custody and/or administration. Its transfer-agency business alone supports approximately $8.6 trillion in assets.
This gives BNY something most digital-native tokenization providers cannot easily replicate: existing relationships with asset managers, regulated recordkeeping infrastructure, operational controls and connectivity across the fund-distribution lifecycle.
BNY can now combine:
Fund administration and transfer agency
Traditional and digital custody
Token issuance and lifecycle management
Fiat and stablecoin subscriptions and redemptions
Tokenized deposits and cash infrastructure
Existing asset-manager and investor connectivity
This could allow fund managers to launch tokenized products through an integrated servicing relationship instead of assembling separate tokenization, custody, transfer-agency and payment providers.
First clients include:
BNY Investments Dreyfus' new money market fund with its BLIQUID tokens representing fund shares
Baillie Gifford's Enhanced Yield Fund (BAGEY), the first publicly available, fully native U.K.-regulated tokenized fund.
BlackRock's BSTBL, a new tokenized share class of its money market fund designed to meet stablecoin reserve requirements.
BNY is not alone in recognizing that fund servicing is becoming a strategic layer of tokenization.
State Street, the other global fund-servicing heavyweight, with $54.5 trillion under custody and/or administration, is developing tokenized fund servicing.
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