Goldman Sachs, BNY Mellon launch tokenized money market funds solution

The Bank of New York Mellon Corporation (BK) and the Goldman Sachs Group, Inc. (GS) announced a collaborative initiative by which BNY will employ blockchain technology developed by Goldman Sachs to maintain a record of customers’ ownership of select Money Market Funds, in a significant step towards enhancing the utility and transferability of existing MMF shares. This combined solution marks the first time in the U.S. that fund managers have enabled subscription for shares of their MMFs via BNY’s LiquidityDirect and Digital Asset platforms, the corresponding value of which will be represented through mirrored record tokenization utilizing GS DAP. BlackRock (BLK), BNY Investments Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management will participate in the initial launch. Investors can subscribe and redeem MMF shares through BNY’s LiquidityDirect platform, which offers connectivity to GS DAP via integration with BNY’s Digital Assets platform. “As the financial system transitions toward a more digital, real-time architecture, BNY is committed to enabling scalable and secure solutions that shape the future of finance,” said Laide Majiyagbe, Global Head of Liquidity, Financing and Collateral at BNY. “Mirrored tokenization of MMF shares is a first step in this transition, and we are proud to be at the forefront of this first-of-its-kind initiative. Our collaboration with Goldman Sachs Digital Assets highlights our role as a trusted bridge between traditional finance and emerging technologies – empowering clients to navigate this transformation with confidence.”