BNY Mellon launches blockchain-based digital transfer agency to reduce settlement times, though tokenization remains mostly in pilot phase.
Tech & Launches ·
BNY Mellon has launched a digital transfer agency business using blockchain technology, with expectations to reduce settlement times. The institution, which manages $8 trillion in assets, is positioning this new service as a step toward streamlining fund transactions on-chain. According to reports, the move involves shifting toward blockchain-based settlement for a substantial portion of custodial assets.
The launch reflects a broader institutional pivot toward tokenization infrastructure, though progress in this area remains nascent. BNY Mellon acknowledges that much of the tokenization work currently underway is still confined to pilot programs rather than full deployment. This staged approach suggests the firm is testing feasibility and operational mechanics before scaling across its broader client base.
What remains unclear is the timeline for moving beyond pilot status, the specific settlement time reductions expected, and which asset classes or transaction types will be prioritized for on-chain migration first. The extent to which competitors and market participants will adopt similar blockchain-based transfer mechanisms also remains to be seen.