BNY, the world’s biggest bank for safeguarding assets, is embracing blockchain technology for a core feature of its record‑keeping systems, as Wall Street races to adapt to a new digital era. The 242‑year‑old financial services giant will maintain its physical transfer agent while launching a digital arm that processes trades and keeps ownership records, leveraging a single on‑chain source of truth.

The move follows tokenised money‑market funds from Black Rock and Franklin Templeton, and highlights a broader push for shares issued in tokens and traded on a blockchain. BNY’s new digital transfer agent will manage roughly $8.6tn in assets across 7.6 million accounts, offering a universal record for share ownership without multiple intermediaries.

“We think of BNY as modernising a function that sits behind every single fund transaction by bringing the books and records on‑chain,” said Carolyn Weinberg, chief product and innovation officer. The technology promises faster settlement, 24/7 operation and reduced data reconciliation costs.

However, industry leaders warn that physical plumbing will remain for years, and blockchain brings new cyber‑security risks. Franklin Templeton’s Jenny Johnson noted the “beauty of blockchain is there’s only one source of truth,” while BNY’s Emily Portney emphasised the need to keep trillions on traditional rails while building future rails.