BNY has entered the blockchain ecosystem with full speed. The financial institution has designed a platform that bridges digital and traditional assets. BNY’s initial focus is on using the power of blockchain and asset tokenization technology to drive operational efficiency, mobility of assets, transparency and real-time access to data.
BNY’s platform will integrate off-chain and on-chain data to streamline reporting, monitoring, and servicing capabilities across blockchains.
Last September, Bloomberg reported how BNY is moving closer to rolling out custody services for the bitcoin and ETH held in Exchange Traded Products or ETPs. At the time the SEC’s SAB 121 was still in place. The SAB 121 rule had forced banks to classify crypto as liabilities.
BNY has been developing digital assets custody services since before October 2022, but only now, with the SAB 121 rule removed, can financial institutions act for their clients.
BlackRock Chooses BNY’s New Blockchain Accounting Tool
Larry Fink was bullish about digital assets in his annual letter this week. He compared the SWIFT payment system to the postal service, and tokenization to how email has disrupted sending letters in the post.
“Every stock, every bond, every fund – every asset – can be tokenized. If they are. It will revolutionize investing.” Fink stated in the report. He is championing tokenization having watched the BlackRock Bitcoin ETP do so well since it was launched.
Shortly after Fink’s letter was made public, Fortune broke a story about BNY’s announcement of its latest crypto offering.
BNY’s new tool provides up-to-date data about a fund’s net asset value, directly on a blockchain. BNY’s Head of Digital Assets, Caroline Butler, told Fortune that “because we have expertise in blockchain, other fund accountants in the industry would struggle to do this.”
BlackRock is reported to be the first client for BNY’s new platform. Robert Mitchnick, BlackRock’s head of digital assets confirmed the story in a statement to Fortune.
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See Also:
With SEC’s SAB 121 Gone, How Soon Will U.S. Banks Start Adopting Crypto? | Disruption Banking
BNY Mellon Publishes Custody Documents for Negotiation on ISDA Create | Disruption Banking
How is BNY Mellon helping its people to be Digital Natives? | Fintech News
