Bank of New York Mellon Corp. announced its new blockchain-based tools on Friday. According to company officials, BlackRock will be the first client to implement the technology with Buidl, an on-chain money market fund.
Trump administration’s policies create a friendly crypto environment
The financial giant’s move comes from a growing acceptance of blockchain technology in traditional finance, supported by changes in favorable regulations under the administration of US President Donald Trump.
BNY Mellon temporarily suspended its cryptocurrency services during the Biden administration after the Securities and Exchange Commission issued guidance known as SAB 121.
In 2024, banks were exempted and were able to detain exchanged goods Bitcoin and Ethereum without treating them as balance sheet liabilities. Under Trump, the SEC quickly revoked its previous guidance. This was not widely popular among banks and crypto companies.
BNY’s latest Crypto products move beyond custody, reflecting the growth of financial products launched in blockchains such as BlackRock’s on-chain money market fund, Buidl and more #BlackRock #bny #buidl #bitcoin https://t.co/hrhn1rdfm1
– Digital Startup (@digitalStartup5) April 3, 2025
BlackRock Partnership Marks “Unprecedented Event”
Bny Mellon relies on BNY Mellon as both a fund manager and manager for BuidL funds, and will be using the new tool first. BlackRock’s digital assets director Robert Mitchinik is called the ability to bring off-chain data insights to public blockchains into “unprecedented events and key industry milestones.”
The partnership is based on an official statement from BlackRock CEO Larry Fink, which supports an increase in tokenization of financial assets, increasing costs and efficiency. While the technology remains limited to specific test cases and mostly blockchain-native customers, this implementation represents a step towards wider adoption.
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Real-time data aims to boost the fund’s creditworthiness
Caroline Butler, head of digital assets at BNY, explained in an interview with Fortune that the new product will allow more transparent and current information about funds that have been tokenized.
“Because we have blockchain expertise, other fund accountants in the industry will have a hard time doing this,” she said. “As we continue to add more value to our clients, it’s sitting in that sweet spot.”
Instead of relying on third-party accounting services, the tool posts information directly to the blockchain to NAV. According to Butler, this can help investors see the current NAV value of devices like Buidl and improve their creditworthiness. Although this type of data sharing is not specific to Crypto, he said Bny’s blockchain technology will allow the company to provide a more complete set of tools for tokenized funds.
BNY Mellon continues to push blockchain despite market volatility
BNY Mellon’s latest product represents another step into the blockchain sector that began with the introduction of Bitcoin in 2008. Despite the market ups and downs, banks have shown continued interest in technology, including the previous launch of Bitcoin and Ethereum digital asset management platforms.
In March, Butler testified before the House Financial Services Committee during a hearing on Stubcoin. “The adoption of blockchain technology in connecting traditional and digital markets is consistent with BNY’s long track record of supporting innovation in the global financial system,” she said at the hearing.
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