BNY will launch a digital transfer agent service that records fund transactions and shareholder records on a blockchain.
A transfer agent is a financial institution or agent that manages shareholder registers, issues and cancels shares, and pays dividends.
In a recent report, the Financial Times said BNY, which has more than $59 trillion in assets under custody and administration, is introducing a new service that keeps its existing transfer agent system while moving fund trade processing and shareholder register management to blockchain.
BNY's transfer agent business currently manages $8.6 trillion in assets and 7.6 million accounts.
Baillie Gifford will be the first to adopt the system for Britain's first fully native regulated tokenised fund. BlackRock and BNY unit Dreyfus are expected to adopt it for future funds.
Chi-gyu Hwang
delight@d-today.co.kr