Giant Move from the World’s Largest Custodian Bank: $8.6 Trillion Moving to Blockchain
BNY, one of the world’s largest custodian banks, is taking a giant step in the digital transformation of traditional finance by moving its $8.6 trillion transfer agency operations to blockchain technology.
The financial giant BNY has made a critical move toward transforming blockchain technology from a speculative tool into the core operating system of global finance. The bank, which manages and keeps in custody over $59 trillion in assets, is moving its record-keeping processes on-chain to strengthen its tokenized fund infrastructure. This move reinforces Wall Street’s confidence in the digital asset ecosystem and institutional legitimacy in the RWA (Real World Assets) space.
The bank’s transfer agency unit, which serves 7.6 million accounts and $8.6 trillion in assets, will now operate through a single record of ownership thanks to blockchain. This transformation aims to reduce costs and speed up processes by eliminating the numerous intermediaries required during transactions. While Baillie Gifford is preparing to launch the first fully domestic tokenized fund in compliance with UK regulations using this new system, giants like BlackRock and Dreyfus are also expected to utilize this infrastructure.
The Future of Wall Street Is Being Built on Blockchain and Tokenization
This shift in the sector is not limited to BNY. Major banks like JPMorgan, Citi, and Bank of America plan to establish a shared tokenized deposit network by 2027 to protect their deposits and increase efficiency. According to the prediction of Brickken CEO Edwin Mata, the entirety of Wall Street will operate on blockchain technology by 2030. This situation indicates that the financial system is entering a new era in terms of transparency and speed.
BNY is not completely abandoning traditional systems during this transformation process managed from its headquarters in New York. The bank states that trillions of dollars in funds will remain on existing infrastructures for some time and that they are cautious against cyber risks such as smart contract errors. However, the efficiency boost created by a single ledger of ownership proves the bank’s long-term commitment to this technology.