BlackRock is among the first issuers of the new fund servicing capabilities.
Custody giant BNY has launched Digital Transfer Agency (TA) capabilities by extending the firm’s TA books and records services to support digitally native funds, and BNY Investment Dreyfus, Baillie Gifford, and BlackRock are among the first issuers of the new fund servicing capabilities, officials say.
“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,.” officials say.
“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,” officials say.
The BNY Digital TA fund servicing capabilities support “both digital and traditional asset funds in an end-to-end lifecycle across multiple jurisdictions and blockchains, enabling a unified client servicing experience,” officials say.
“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,” according to BNY. “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.”
“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,” says Carolyn Weinberg, chief product and innovation officer at BNY in a prepared statement.
The Digital TA support 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,” according to BNY. “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.”
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