The Bank of New York Mellon Corporation (BNY) has recently invested in Ethereum based platform for expanding its Digital Asset Product offering. BNY launched Digital Asset Data Insights product.
Platform is an on-chain offering, which is structured to securely and efficiently deliver both on- and off-chain data across blockchain networks. Product is based on Ethereum network. The product aims to enhance transparency and accessibility by broadcasting select fund accounting data. Blackrock will be first clint, using this product. Transaction will support BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), a tokenized short-term U.S. Treasury fund. BNY provides fund administrator and custodian services to BlackRock.
Using smart contract technology, BNY automates data consumption to enable investors and on-chain participants to leverage distributed ledger technology (DLT) for improved operational efficiency, asset mobility, and real-time data access. Caroline Butler, Global Head of Digital Assets at BNY, emphasized the platform’s commitment to servicing the end-to-end asset lifecycle while maintaining data integrity.
BNY’s Digital Asset Platform is a single, integrated solution for the safekeeping, servicing, and management of digital assets, leveraging blockchain and tokenization technologies to unlock asset utility, broaden distribution channels, manage risk, and inform investment decisions. This launch underscores BNY’s ambition to play a fundamental role in the lifecycle of tokenized assets, building on its 240-year legacy of trust and innovation. BNY oversees $52.1 trillion in custody and administers $2.0 trillion in AUM.
Banks are increasingly using Etherium Network for building Digital Asset Platform
Banks are leveraging the Ethereum network to build and expand their Digital Asset Platforms. BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), employs smart contract technology to automate data consumption, enhancing transparency, operational efficiency, and real-time data access for investors and on-chain participants.
Ethereum’s decentralized and programmable blockchain makes it a popular choice for financial institutions exploring digital asset solutions, as it supports tokenization, smart contracts, and distributed ledger technology (DLT). These features enable banks to streamline processes, manage tokenized assets, and broaden distribution channels while maintaining data integrity. Other banks and financial institutions are also exploring Ethereum for similar purposes, though specific implementations vary based on their strategic goals and regulatory considerations.
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