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BNY, the world’s largest custodian, has announced an expansion of its digital assets platform with the launch of a new tool designed to provide both on- and off-chain accounting data to blockchain networks. This development highlights the growing integration of blockchain technology within traditional financial services.

Introducing Digital Asset Data Insights

The newly launched Digital Asset Data Insights product is a data tool aimed at enhancing security and efficiency by offering fund accounting data across blockchains. This innovation marks an important step in BNY’s efforts to leverage blockchain technology for improved transparency and streamlined processes.

Global asset manager BlackRock is set to be the first client to use this tool. The platform will enable BNY to broadcast a fund’s net asset value (NAV) directly onto the Ethereum blockchain. By incorporating smart contracts, the system automates data delivery for investors in tokenized funds, making it a significant contribution to the rapidly expanding tokenized assets market.

Key Benefits for Investors

Caroline Butler, global head of digital assets at BNY, emphasized the importance of transparent data in today’s market. She stated:

“Accessing transparent data is critical to our clients’ success in today’s market. Our platform’s support of Digital Asset Data Insights underscores our commitment to servicing the end-to-end asset lifecycle via distributed ledger technology, while maintaining data integrity from a trusted source.”

The first fund to benefit from this solution will be the BlackRock USD Institutional Digital Liquidity Fund. Additionally, BNY will broadcast data for BUIDL, a tokenized short-term U.S. Treasury fund launched in 2024, further strengthening its role in the blockchain space.

Industry Impact

BlackRock’s head of digital assets, Robert Mitchnick, highlighted the significance of this development:

“BNY’s enablement of off-chain data insights to public blockchains is an unprecedented event and a significant milestone for the industry. By enhancing data transparency and accessibility for our investors, BNY has set a new standard for digital asset innovation.”

BNY’s adoption of distributed ledger technology positions the company as a leader in fostering transparency and accessibility in financial services. With over $52 trillion in assets under custody and administration, along with $2 trillion in assets under management, BNY’s commitment to blockchain integration is expected to influence the broader adoption of tokenized assets.

BNY’s Role in Crypto Investment

BNY has also made strides in the cryptocurrency investment space, including investments in spot Bitcoin exchange-traded funds (ETFs). The company aims to provide custody solutions for crypto ETFs, navigating regulatory reviews to expand its services in the digital asset market.

As blockchain technology continues to reshape the financial landscape, BNY’s developments in digital asset solutions signal the growing importance of integrating traditional financial systems with innovative technologies. Investors looking to explore tokenized assets and blockchain-based funds may find new opportunities emerging from these advancements.

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