BNY has revealed the enhancement of its digital assets platform with the introduction of a new tool designed to provide both on- and off-chain accounting information to blockchain networks.
Note from the editor: This article has been updated to clarify that the company is identified as “BNY,” rather than “BNY Mellon.”
As the world’s leading custodian, BNY announced in a press release that it would be launching the Digital Asset Data Insights product, a data tool aimed at enhancing security and efficiency while providing access to fund accounting information across various blockchains.
This innovative tool, with global asset manager BlackRock as its inaugural client, will enable BNY to publish a fund’s net asset value on the Ethereum (ETH) network.
Through this new on-chain solution, the financial services titan is further solidifying its presence in the growing blockchain technology arena. According to the announcement, part of the focus lies in the swiftly expanding market for tokenized assets.
Digital Asset Data Insights will empower BNY to utilize smart contracts for automating data delivery to investors in tokenized funds.
“Having access to transparent data is essential for our clients’ success in the current market landscape,” remarked Caroline Butler, global head of digital assets at BNY. “The support for Digital Asset Data Insights on our platform highlights our dedication to managing the complete asset lifecycle through distributed ledger technology, all while ensuring data integrity from a reliable source.”
The BlackRock USD Institutional Digital Liquidity Fund will be the first to take advantage of this new offering.
BUIDL, launched in 2024 and representing a tokenized short-term U.S. Treasury fund, will also see its data broadcast on-chain by BNY.
Discussing this recent advancement, BlackRock’s head of digital assets, Robert Mitchnick, stated:
“BNY’s ability to provide off-chain data insights to public blockchains is an extraordinary development and a pivotal moment for the industry. By improving data transparency and accessibility for our investors, BNY has established a new benchmark for digital asset innovation.”
With its headquarters in New York City, BNY serves as the fund administrator and custodian for BUIDL’s assets.
Overseeing more than $52 trillion in assets under custody and administration, along with over $2 trillion in assets under management, BNY is keen on leveraging distributed ledger technology for greater transparency and access. The custodian giant has also made strides into spot Bitcoin (BTC) exchange-traded funds and is targeting crypto ETF custody amid ongoing regulatory analysis.