BNY Mellon is moving its core transfer agency records to blockchain infrastructure in an effort to build a single on-chain ownership ledger and cut reliance on intermediaries, according to CoinDesk. The initial rollout will support clients including Baillie Gifford, BlackRock and Dreyfus, the asset management arm under BNY. The scope includes what the report described as the first fully native, UK-regulated tokenized fund, along with other tokenized products in development. CoinDesk also said BNY and other large banks are building blockchain-based infrastructure and tokenized deposit networks. Even so, the bank expects legacy systems to remain in place for years because cybersecurity concerns and smart contract risks have not gone away. The move shows how major financial institutions are introducing blockchain into recordkeeping and fund infrastructure while still keeping conventional systems alongside newer rails.
BNY Mellon is migrating its core transfer agency records onto blockchain, aiming to create a single on-chain ownership ledger and reduce its dependence on intermediaries, according to CoinDesk.
The initial phase will support clients including Baillie Gifford, BlackRock and Dreyfus under BNY. It will cover what the report called the first fully native, UK-regulated tokenized fund, as well as other tokenized products that are being planned.
CoinDesk said BNY and other large banks are also building blockchain-based infrastructure and tokenized deposit networks. The bank expects traditional systems to continue operating in parallel over the next several years as cybersecurity issues and smart contract risks remain unresolved.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
