BNY Moves Fund Ownership Records Onchain in Major Step Toward Blockchain Finance

TL;DR: 

• BNY’s transfer agency division oversees $8.6 trillion in assets across 7.6 million investor accounts. 
• British asset manager Baillie Gifford, with $261 billion under management, is among the first users of the new digital infrastructure. 
• BNY administers more than $59 trillion in assets under custody and administration globally, according to institutional reports.

BNY, the New York-based custodian banking institution, moves fund ownership records onchain through the launch of a blockchain technology-based version of its transfer agency business. The goal of this initiative is to modernize the accounting infrastructure that underpins every transaction in investment funds.

Transfer agents maintain official records of ownership of shares in investment funds. These entities manage the issuance and redemption of shares, update owner ledgers, and process investor orders. Traditionally, ownership information remains stored in a fragmented manner across multiple independent databases used by managers, custodians, and distributors, which requires periodic reconciliations between parties.

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