BNY Mellon to Offer Safekeeping for Contentious Digital Asset Representation of Government Reserves
In a significant development, the Bank of New York Mellon (BNY) has been appointed as the primary custodian for the underlying assets of OpenEden's Tokenized US Treasury Bills ($TBILL) Fund. This move follows the fund's receipt of an investment grade 'A-bf' rating from Moody's, which was upgraded back to A-bf following BNY Mellon Investment Management Singapore's takeover of investment management responsibilities.
The 'bf' suffix in the ratings signifies that the rating is for bond funds, reflecting Moody’s view on the maturity-adjusted credit quality of the fund’s assets rather than a direct credit rating. The fund, launched in 2023, provides exposure to short-dated US Treasury Bills and overnight repurchase agreements through tokenization on the blockchain. BNY Mellon also acts as the fund’s primary custodian.
The upgrade from a previous downgrade (from A-bf to Baa-bf earlier in 2025) was explicitly attributed to Moody's after BNY Mellon's takeover of investment management responsibilities, which added significant credibility and fiduciary expertise to the fund. BNY Investments Dreyfus will manage the $TBILL Fund on OpenEden's behalf as sub-manager.
However, it's important to note that OpenEden has faced controversies in the past. Eugene Ng, a co-founder of OpenEden, stepped down late last year following allegations of a drink spiking incident. Additionally, DWF Labs, a company co-founded by Ng, is a controversial crypto market maker and investor. Reports from The Nation, a publication, alleged that DWF Labs' managing partner Andrei Grachev has a criminal record in Russia for operating a fraudulent scam.
While the appointment of BNY as the primary custodian may provide some peace of mind for investors, awareness of OpenEden's controversial background might be useful for investors to make their own judgment. The $TBILL Fund currently has $287 million in assets under management.
Sources: 1. BNY Mellon Appointed as Primary Custodian for OpenEden's $TBILL Fund 2. Moody's Upgrades OpenEden's $TBILL Fund Rating 3. OpenEden's Tokenized US Treasury Bills Fund Receives Investment Grade Rating from Moody's 4. The Controversial Background of OpenEden
- The Tokenized US Treasury Bills ($TBILL) Fund, managed by BNY Investments Dreyfus on OpenEden's behalf, received an investment grade 'A-bf' rating from Moody's, signifying the maturity-adjusted credit quality of the fund's assets.
- The industry analysis of the finance sector reveals that the $TBILL Fund provides exposure to short-dated US Treasury Bills and overnight repurchase agreements through tokenization on the blockchain, with BNY Mellon acting as the fund’s primary custodian.
- General-news sources report that OpenEden, the company behind the $TBILL Fund, faces controversies from the past, such as allegations against co-founder Eugene Ng and DWF Labs, a company connected to Ng, being a controversial crypto market maker and investor.
- The news about OpenEden's appointment of BNY Mellon as the primary custodian for the underlying assets of the $TBILL Fund, coupled with the fund's upgraded rating from Moody's, could potentially provide insights into the intersection of technology, finance, and lifestyle within the investment industry.
- Despite the positive developments with BNY Mellon's appointment and the fund's upgraded rating, investors should be well-informed about the controversial background of OpenEden when making their investment decisions, as the $TBILL Fund currently has $287 million in assets under management.
