BNY is bringing blockchain technology to one of its core businesses. The company is launching a digital transfer agency platform that will process fund transactions and maintain shareholder records on-chain, the Financial Times reported Wednesday.

The bank, which safeguards more than $59 trillion in client assets, will continue operating its conventional transfer agency while introducing a blockchain-based alternative that records ownership on a shared ledger instead of relying solely on traditional financial infrastructure, according to the report.

BNY expects the new platform to streamline market operations by reducing intermediaries, accelerating settlement and supporting round-the-clock trading. According to the bank, blockchain could modernize the record-keeping systems underlying every investment fund transaction.

Baillie Gifford will become the first client to use the platform for a fully native UK-regulated tokenized fund, while BNY’s Dreyfus division and BlackRock are expected to launch funds using the same infrastructure.

Executives from both BNY and Baillie Gifford said blockchain creates a shared source of truth that eliminates much of the reconciliation required between financial institutions.

Still, they cautioned that legacy systems will continue operating alongside blockchain for years and highlighted cybersecurity risks associated with smart contracts and blockchain bridges.