BNY Investments Dreyfus, Baillie Gifford and BlackRock among first issuers

BNY, a global financial services company, announced the launch of its new Digital Transfer Agency (TA) capabilities, meeting an expanded set of client needs by extending the firm’s leading TA services to support digitally native funds.

BNY Digital TA modernizes BNY’s fund servicing capabilities to support both digital and traditional asset funds in an end-to-end lifecycle across multiple jurisdictions and blockchains, enabling a unified client servicing experience.

“With this new capability, BNY is helping power the future of financial markets through digital market infrastructure with a global, scalable platform that integrates tokenization, distribution, and custody,” said Emily Portney, Global Head of Asset Servicing at BNY. “We are excited to support clients as they expand into new asset classes, enabling true on-chain mobility of real-world assets, with legal representation of the fund’s books and records on a public blockchain.”

When tokenized funds are issued on a blockchain from the start, the legal title and economic value of the funds exist on-chain rather than remain in the mirror-token or “digital twin” models that have prevailed to date. For fund providers, on-chain books and records underpin a unified “source of truth” across fund activity occurring on the blockchain. Full on-chain asset and peer-to-peer mobility will be supported through both fiat and stablecoin subscriptions and redemptions, enabled by new mint/burn capabilities, all within the BNY ecosystem.

“Digital Transfer Agency capabilities represent the next evolution of fund servicing, combining the same operational rigor, transparency and trust of traditional services paired with the future of innovation in digital markets,” said Carolyn Weinberg, Chief Product and Innovation Officer at BNY. “As fund managers increasingly bring digital investment products to market, we’re excited to bring together the resilient framework they rely on with digital markets interoperability that makes asset servicing and mobility easier.”

Digital TA is part of BNY’s integrated digital assets offering, which spans custody, stablecoin enablement, tokenized deposits and infrastructure supporting the institutional adoption of digital assets. Those capabilities are directly connected to the firm’s underlying TA recordkeeping infrastructure, creating a trusted source of ownership and transaction data across both traditional and digital environments.

“We are pleased to advance BNY’s ongoing efforts to bring together distinct capabilities into integrated, innovative solutions that address evolving client needs,” said Stephanie Pierce, Deputy Head of BNY Investments. “Digital TA will further strengthen our ability to combine investment and servicing expertise to deliver digital asset solutions that simplify cash and liquidity management.”

The service will initially launch with select clients in the U.S. and U.K., with plans for expansion. BNY will offer a new digitally-native money market fund from BNY Investments Dreyfus, with its BLIQUID tokens representing fund shares. Baillie Gifford, which co-designed its offering with BNY as part of a long-term strategic relationship, has already brought it to market, launching the Baillie Gifford Enhanced Yield Fund (BAGEY), the first publicly available, fully native U.K.-regulated tokenized fund. BlackRock is also expected to use these capabilities to launch BSTBL, a new tokenized share class of its money market fund designed to meet stablecoin reserve requirements.

With approximately $8.6 trillion in assets serviced and more than 7.6 million investor accounts, BNY is uniquely positioned to support fund issuers launching both traditional and digital fund structures and enable their growth into new asset classes and on-chain funds.

Source: BNY