BNY Launches Blockchain Accounting for Tokenized Funds

BNY has launched blockchain accounting for tokenized funds, and Baillie Gifford, BlackRock, and Dreyfus are the first to test it. This is a new digital transfer agency platform designed to maintain owner registers on a distributed ledger and reduce the number of intermediaries.

The bank announced the launch through FT. Alongside the traditional system, BNY wants to keep a separate digital layer for recording ownership rights rather than overhauling the old infrastructure all at once. In simple terms, this is an attempt to move part of the paperwork onto blockchain without abruptly shutting down legacy processes.

BNY says the new setup should become a single source of accurate data on fund owners. The bank also expects it to speed up transaction settlements. And one more point: BNY openly acknowledges that traditional financial infrastructure will continue to operate alongside blockchain solutions for many years.

Why is BNY moving in this direction at all?

The reason is simple. Funds involve a lot of manual reconciliation between different systems, and that takes time and money. BNY’s Head of Product and Innovation Carolyn Weinberg said the bank sees this as a modernization of the function that underpins every fund transaction, by moving books and registers onto blockchain.

This step did not come out of nowhere. In 2025, BNY and Goldman Sachs already launched a solution for tokenized money market funds, and on 29 June 2026 the bank added USDC to its Digital Asset Custody platform. In other words, BNY is steadily building infrastructure for on-chain finance rather than making a one-off headline-grabbing announcement.

“We see this as a modernization of the function that underpins every fund transaction, by moving books and registers onto blockchain,” Carolyn Weinberg said.

Who will get access to the platform first?

Baillie Gifford will be the first to use the new platform. The company plans to launch the first fully native tokenized fund in the UK that will operate within local regulation. For the market, this matters not only because of the brand, but also because of the format itself: the fund is built for a digital register from the start, rather than being “digitized” after the fact.

According to additional details from Baillie Gifford’s release, the BAGEY fund launched on 22 June 2026 as a dollar-denominated UK OEIC on Ethereum and Solana. The portfolio consists of short-term public corporate bonds, the indicative yield is around 7%, duration is 2 years, the average portfolio rating is BBB, and the minimum investment starts at $100. This is no longer an abstract idea about tokenization, but a concrete product with clear parameters.

In addition to Baillie Gifford, BlackRock and Dreyfus, a division within BNY, also plan to use similar infrastructure. For investors, this signals that this is not one experiment, but a broader move by major players toward tokenized funds. And that is where the main market question begins.

Market reaction

BNY currently services approximately $8.6 trillion in assets in its transfer agency business across 7.6 million accounts. The bank’s total assets under management and custody exceed $59 trillion. These figures explain why even a partial shift to blockchain could have a major effect: if the accounting system changes at this scale, the consequences will be felt not only by funds, but by the entire asset servicing market.

Against this backdrop, it is also worth noting the regulatory environment. On 30 April 2026, the FCA allowed fund managers in the UK to keep owner registers on DLT within existing rules and introduced an optional Direct-to-Fund model. For BNY, this is a convenient window: the market has already received clearer rules, so launching tokenized funds in the UK looks less risky than it did a year ago.

That is why this news matters not only to bankers. It shows that fund tokenization is moving from the lab into operations. And there is another benchmark here: in its research, BNY forecasts that stablecoins, tokenized deposits, and digital MMFs could reach about $3.6 trillion in circulating supply by 2030. That is not a forecast for tomorrow, but it is already the framework in which major banks are building plans.

• BNY launched a blockchain-based digital transfer agency platform.

• Baillie Gifford, BlackRock, and Dreyfus will be the first to use it.

• BNY already services about $8.6 trillion in assets in its transfer agency business.

• The bank’s total assets under management and custody exceed $59 trillion.

• Baillie Gifford’s BAGEY launched on 22 June 2026 with a minimum of $100 and a yield target of around 7%.

• On 30 April 2026, the FCA allowed DLT registers for funds within existing rules.

What does this mean for investors?

For long-term investors, the main takeaway is that fund accounting could become faster and more transparent. If one register is synchronized in near real time, the chance of confusion between systems decreases. But that does not mean the risks disappear. BNY itself acknowledges that blockchain brings new threats, including smart contract vulnerabilities and cross-chain bridge risks.

For traders and those following asset tokenization, another detail matters. When a bank the size of BNY launches such a product, it strengthens confidence in a model where the fund, the register, and settlements partly live on-chain. But the transition will be slow. Legacy systems will continue to operate in parallel for a long time, so the market will see not a leap, but a series of gradual launches and tests.

For Ukrainian readers, it is worth looking at the bigger picture. If major banks move fund accounting onto blockchain, over time this could make access to tokenized products easier and turn them into a more standard part of the global market. For those already holding cryptocurrency or stablecoins, this is another reminder that the line between traditional finance and on-chain infrastructure is becoming thinner.

Frequently asked questions

What exactly did BNY launch for tokenized funds?

The bank launched a blockchain-based digital transfer agency platform. It is designed to maintain owner registers for tokenized funds on a distributed ledger and operate alongside the existing accounting system.

Which funds will use the new system first?

Baillie Gifford, BlackRock, and Dreyfus will be the first. For Baillie Gifford, this is tied to the launch of the first fully native tokenized fund in the UK, which started on 22 June 2026.

Why is this important right now?

Because the regulatory environment in the UK has already become more favorable for DLT registers, and major banks are expanding infrastructure around tokenized assets. BNY already services about $8.6 trillion in its transfer agency business, so even partial blockchain adoption here is highly significant.

BNY is betting on a slow but systematic transition. And if you are following how the fund and tokenized asset market is changing, it is worth watching not only new launches, but also how major institutions are restructuring accounting and settlements. Those looking to take advantage of market changes can quickly sell Bitcoin on Monobank without unnecessary hassle and at a favorable rate.

This material is not financial advice. Cryptocurrency trading involves significant risks. Part of this text was prepared with the help of artificial intelligence based on public sources and reviewed by our editorial team.