#BNY
9 articles tagged #BNY — curated RWA tokenization coverage.
How Investors May Respond To BNY (BNY) Integrating Staking Into Institutional Digital Asset Custody
Bank of New York Mellon (BNY) is actively integrating digital asset infrastructure to maintain its position as a system-critical custodian in the evolving financial landscape. The bank has launched a Digital Transfer Agency specifically designed for on-chain fund servicing, which serves as a foundational component for supporting tokenized funds and stablecoin-linked products. This initiative is complemented by a strategic collaboration with Galaxy Digital regarding staking services, signaling BNY's commitment to modernizing its platform. By embedding these digital capabilities into its core custody and fund services, BNY aims to mitigate the risk of blockchain-driven disruption to its traditional business model. While these efforts are supportive of the bank's long-term digital roadmap, the company continues to face challenges related to fee pressure and potential client outflows. The success of this transition remains contingent upon broader regulatory developments and the pace of institutional client adoption for on-chain assets. Ultimately, BNY's strategy reflects a broader industry trend where legacy financial institutions are proactively building the infrastructure necessary to service the growing tokenized asset market.
BNY to add crypto staking to digital asset custody platform
BNY has partnered with Galaxy to integrate staking capabilities into its institutional digital asset custody platform, pending regulatory approval. This collaboration leverages Galaxy's infrastructure to allow BNY's clients to stake assets directly within their existing custody environment, eliminating the need for third-party transfers. The move represents a significant expansion of BNY's blockchain-based services, building upon its 2022 entry into crypto custody. Beyond staking, BNY is actively modernizing its core operations by migrating transfer agency record-keeping to a unified onchain ledger. The bank also announced plans to launch 24/7 settlement for tokenized U.S. Treasuries by 2027, with private blockchain testing scheduled for late 2026. These initiatives underscore the bank's strategy to bridge traditional financial infrastructure with blockchain technology to reduce intermediary reliance. As a custodian overseeing tens of trillions of dollars, BNY's commitment to tokenized assets and blockchain integration serves as a bellwether for institutional adoption of RWA-related financial services.
BNY launches digital transfer agent for tokenized funds: FT
BNY, the world's largest custodian bank with over $59 trillion in assets, is launching a digital transfer agency platform to process fund transactions and maintain shareholder records on-chain. This initiative marks a significant shift for the bank as it integrates blockchain technology into its core operations to run alongside traditional financial infrastructure. By utilizing a shared ledger, the platform aims to reduce intermediaries, accelerate settlement times, and enable round-the-clock trading for investment funds. Baillie Gifford is set to be the first client to utilize this infrastructure for a fully native, UK-regulated tokenized fund. Additionally, BNY’s Dreyfus division and BlackRock are expected to launch funds using the same blockchain-based system. Executives emphasize that this shared source of truth will drastically reduce the reconciliation burdens typically faced by financial institutions. While the move signals a major institutional adoption of tokenization, the bank acknowledges that legacy systems will remain in place for years while addressing cybersecurity risks related to smart contracts and bridges.
BNY Pushes Toward 24/7 Treasury Settlement as Tokenization Grows
BNY is advancing its infrastructure to support 24/7 settlement for tokenized U.S. Treasuries, aiming to bridge the gap between traditional finance and digital asset markets. By leveraging its role as a major custodian, the bank seeks to enable near-instantaneous clearing of government securities, which currently operate on a T+1 settlement cycle. This initiative addresses the liquidity inefficiencies inherent in legacy systems that struggle to keep pace with the round-the-clock nature of blockchain-based trading. As institutional demand for tokenized yield-bearing assets grows, BNY's move signals a critical shift toward integrating regulated banking rails with distributed ledger technology. The bank is focusing on interoperability to ensure that tokenized Treasuries can move seamlessly across various blockchain networks while maintaining compliance. This development is significant for the RWA market because it reduces counterparty risk and capital lock-up times for investors. Ultimately, BNY's push underscores the transition of institutional finance toward a continuous, programmable settlement environment for high-quality collateral.
Baillie Giffford launches native tokenized fund in Hong Kong
Baillie Gifford has received authorization from the Hong Kong Securities and Futures Commission (SFC) for the Baillie Gifford Enhanced Yield (BAGEY) fund, a fully native tokenized investment vehicle. Unlike traditional tokenized funds that utilize wrappers or special purpose vehicles, BAGEY is issued directly on public blockchain infrastructure, where the token serves as the official record of ownership. This actively managed portfolio focuses on short-duration government and corporate bonds, marking a significant expansion of Hong Kong's tokenized fixed income market. Developed in collaboration with BNY, the fund utilizes BNY’s tokenization and wallet infrastructure to eliminate the need for parallel record-keeping. By establishing the blockchain as the legal source of truth, the structure aims to enhance transparency and reduce operational complexity for professional investors. This development aligns with the Hong Kong Monetary Authority’s Fintech 2030 strategy and Project Ensemble, reinforcing the region's position as a hub for regulated digital assets. The launch represents a shift toward native issuance models that prioritize direct on-chain ownership over legacy intermediary structures.
Northern Trust Launches Tokenized Treasury Fund Share Class
Northern Trust Asset Management has officially entered the tokenized asset market by launching a tokenized share class for its NIF Treasury Instruments Portfolio. This fund invests in short-term U.S. Treasury instruments and maintains a target net asset value of $1.00 per share. The offering is accessible via BNY's LiquidityDirect platform, which leverages Goldman Sachs' Digital Asset Platform for its underlying infrastructure. By utilizing blockchain technology, the firm aims to enhance the efficiency of settlement and transfer processes compared to traditional fund operations. This move follows broader industry momentum, including WisdomTree's recent expansion of its own tokenized money market fund to support 24-hour trading and instant settlement. While these developments signal institutional adoption, the Bank for International Settlements has cautioned that such funds could face operational and liquidity risks during periods of rapid redemption. Northern Trust manages approximately $1.4 trillion in total assets, underscoring the significant scale of traditional finance players now integrating on-chain solutions.
BNY sees FOMO driving asset managers into tokenized funds
Institutional fear of missing out is accelerating the adoption of tokenized money market funds, with BNY and Goldman Sachs establishing the foundational infrastructure for the sector. In July 2025, the two firms launched a mirrored tokenization system that integrates BNY’s LiquidityDirect platform with Goldman Sachs’ GS DAP blockchain layer. This infrastructure has enabled major asset managers, including BlackRock, Fidelity, and Northern Trust, to launch tokenized share classes, with over $1 billion in assets now overseen by the SEC. The momentum is significant, as evidenced by 168 new tokenization assets launched in 2025 and BlackRock’s BUIDL fund reaching $2.1 billion in AUM. Furthermore, Baillie Gifford recently introduced the BAGEY bond fund, utilizing BNY’s custody services across both Solana and Ethereum. This shift toward tokenization offers tangible benefits such as faster settlement and reduced operational friction compared to legacy systems. While the industry is expanding rapidly, risks regarding smart contract security, custody complexity, and infrastructure concentration remain critical considerations for market participants. The successful integration of public blockchains like Solana for institutional products marks a pivotal development in the evolution of traditional finance settlement layers.
Baillie Gifford Tokenized Bond Fund Adds To Solana And Ethereum RWA Race
Baillie Gifford is reportedly developing a regulated tokenized bond fund that utilizes public blockchain infrastructure, marking a significant entry by a traditional asset manager into the real-world asset space. The initiative involves leveraging both Solana and Ethereum, with institutional custody services provided by BNY. This development highlights the growing trend of integrating traditional financial products with blockchain rails to enhance settlement efficiency, transparency, and programmable distribution. By targeting bonds, the fund aims to streamline complex custody systems and improve automated collateral management. The choice of public chains reflects a strategic balance between Ethereum's institutional familiarity and Solana's high-speed, low-cost performance. This move serves as a critical data point for the broader RWA market, demonstrating that institutional demand for yield and efficiency is driving the adoption of blockchain technology. Ultimately, the project underscores the ongoing convergence of regulated financial products and decentralized infrastructure, signaling a shift toward more compatible and efficient market workflows.
TradFi fund manager Baillie Gifford introduces Solana, Ethereum tokenized fund with BNY
Edinburgh-based investment firm Baillie Gifford has launched the Baillie Gifford Enhanced Yield Fund (BAGEY), a tokenized fixed-income fund offering exposure to short-duration public corporate bonds. Developed in collaboration with BNY, the fund utilizes both the Ethereum and Solana blockchains to serve as the official register of record, rather than merely wrapping existing assets. Structured as a U.K.-regulated Open-Ended Investment Company (OEIC), the fund provides eligible investors in the U.K., Switzerland, and the Cayman Islands with direct ownership and recourse. BNY provides the necessary tokenization and wallet infrastructure, while NatWest Trustee and Depositary Services acts as the depositary. Currently yielding approximately 7%, the fund represents a shift toward native onchain issuance within traditional finance frameworks. This development is significant for the RWA market as it demonstrates how established institutional players are moving beyond experimental pilots to integrate blockchain technology into core regulated fund structures. By prioritizing direct onchain ownership, the initiative aims to improve the efficiency and transparency of traditional investment vehicles.