BNY Mints Accounting Data for Digital Assets, Transfers to Blockchains
The Bank of New York Mellon Corporation (BNY Mellon) has taken a significant step forward in the digital asset custody arena with the launch of its Digital Asset Data Insights product. This innovative solution aims to improve transparency and data integrity in digital asset custody, providing professional and institutional clients with clear, accurate, and real-time access to their digital asset holdings.
In a move that sets a new standard in the industry, BNY Mellon will be delivering comprehensive on-chain and off-chain data across various blockchain networks. This includes the first product it will be providing data for on Ethereum - the BNY Mellon-custodied BlackRock's BUIDL on-chain money market fund.
The new product is particularly beneficial for regulated on-chain cash-management solutions such as tokenized money market funds (MMFs). BNY Mellon is collaborating with Goldman Sachs to tokenize MMF shares using blockchain technology, enhancing ownership records, transferability, and utility of MMF assets.
BNY Mellon's digital asset platform supports subscription, transfer, and collateralization of tokenized MMF shares, reducing manual risks, increasing data integrity, and facilitating a more seamless transfer process of MMF shares. This system ultimately increases transparency for investors and fund managers.
In addition to its MMF initiatives, BNY Mellon's broader digital asset initiatives include advanced data aggregation, analytics, and AI-driven processes. This design helps clients consolidate diverse digital and traditional asset information efficiently, improving data accuracy, speeding insights generation, and providing a more transparent and integrated view of private and digital market exposures.
BNY Mellon's Digital Asset Data Insights product publishes on- and off-chain data to blockchains, providing data that is direct from source - the actual custodian. The data in BNY's solution is on-chain, enabling it to be signed and verified, adding an extra layer of security and transparency.
Caroline Butler, Global Head of Digital Assets at BNY Mellon, emphasized the importance of accessing transparent data for clients' success in the current market. BNY Mellon, the first large global custodian to enter the digital asset custody arena, was also the first to be granted an exception by the SEC, with the SEC's SAB 121 crypto accounting rule recently rescinded by the new SEC Acting Chair.
The rescinded rule expands the opportunities for BNY in the digital asset custody arena. BNY's solution is considered groundbreaking in the industry, with BUIDL, used as collateral for Ethena's new USDtb stablecoin, being one of the many examples of its impact. BUIDL's market capitalization is approaching $2 billion, reflecting the growing confidence in BNY Mellon's digital asset initiatives.
In summary, BNY Mellon’s Digital Asset Data Insights product and blockchain-based tokenization of MMFs create transparency by providing real-time, verifiable digital records and improve data integrity by automating custody and settlement processes securely within regulatory standards. This innovation benefits the liquidity, transferability, and monitoring of money market fund assets, ultimately increasing investor confidence and operational efficiency.
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