Bank of New York sends major update for its investors

BNY, the world's largest custodian bank with $59.4 trillion in assets under custody and administration as of March 2026, has launched new digital transfer agency capabilities aimed at supporting funds built natively on blockchain.

The service, called Digital TA, extends BNY's existing fund servicing business to handle both traditional and blockchain-based funds across multiple jurisdictions from a single platform. 

It's launching initially with select clients in the U.S. and UK, with plans to expand further.

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Why this matters for fund managers

"With this new capability, BNY is helping power the future of financial markets through digital market infrastructure with a global, scalable platform that integrates tokenization, distribution, and custody," said Emily Portney, BNY's Global Head of Asset Servicing.

The key shift here is how tokenized funds are structured. When a fund is issued on blockchain from the start, the fund's legal ownership and value exist directly onchain, rather than through a "digital twin" model where a token merely mirrors a fund held elsewhere. 

Carolyn Weinberg, BNY's Chief Product and Innovation Officer, described Digital TA as combining "the same operational rigor, transparency and trust of traditional services" with the flexibility of digital markets.

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Early clients are already using it

Baillie Gifford has already launched its Enhanced Yield Fund using Digital TA, which BNY describes as the first publicly available, fully native UK-regulated tokenized fund. BlackRock is expected to use the same infrastructure for BSTBL, a tokenized share class of its money market fund designed to meet stablecoin reserve requirements. 

BNY's own Dreyfus investment arm will also launch a digitally native money market fund using tokens called BLIQUID to represent fund shares.

Stephanie Pierce, Deputy Head of BNY Investments, said the capability will "strengthen our ability to combine investment and servicing expertise to deliver digital asset solutions that simplify cash and liquidity management."

BNY's transfer agency business currently services roughly $8.6 trillion in assets across 7.6 million investor accounts, giving it substantial existing infrastructure to build the new digital offering on top of.

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