Goldman Sachs and BNY Mellon initiate tokenized money market funds, a new financial offering.
In a groundbreaking development, Bank of New York Mellon (BNY Mellon) and Goldman Sachs Group, Inc. have joined forces to revolutionize the asset management industry. This collaboration marks the first-ever use of blockchain technology for Money Market Fund (MMF) shares subscription in the United States [1][2].
Institutional investors can now subscribe to and hold tokenized shares of MMFs on blockchain, thanks to Goldman Sachs' private blockchain platform, GS DAP®, which records and tracks ownership of MMF shares in the form of digital tokens [1][4]. BNY Mellon, the world’s largest provider of administrative services for money managers, maintains the official books and settlements for these tokenized funds [1][4].
The tokenized MMF shares are offered through BNY Mellon's LiquidityDirect® cash-management platform, which primarily serves investment firms and corporate clients. This blockchain-based approach allows for real-time recording and transfer of ownership, improving transparency and efficiency compared to traditional systems [1][4].
Major asset managers such as BlackRock, Fidelity Investments, and Federated Hermes, along with Goldman Sachs' own asset management arm, are part of this offering [1]. This initiative is part of a broader financial sector trend towards the tokenization of real-world assets, which McKinsey estimates could grow into a $2 trillion market by 2030 [1][2].
Laide Majiyagbe, Global Head of Liquidity, Financing and Collateral at BNY Mellon, stated that the mirrored tokenization of MMF shares is a first step in the transition towards a more digital, real-time architecture in finance. Mathew McDermott, Global Head of Digital Assets at Goldman Sachs, expressed excitement about the strategic collaboration with BNY, calling it a significant step towards enhancing the utility and transferability of existing MMF shares [2].
The seamless transferability of MMF shares is a potential future outcome with the use of tokens on GS DAP®. Using tokens on GS DAP® can unlock the utility of Money Market Fund shares as collateral, potentially opening up new opportunities for investors [2]. This collaboration between BNY and Goldman Sachs Digital Assets highlights BNY's role as a trusted bridge between traditional finance and emerging technologies.
Sources:
[1] Bank of New York Mellon and Goldman Sachs Announce First-of-its-Kind Blockchain Initiative for Money Market Fund Shares. (2025, July 1). Business Wire. Retrieved from https://www.businesswire.com/news/home/20250701005141/en/Bank-of-New-York-Mellon-and-Goldman-Sachs-Announce-First-of-its-Kind-Blockchain-Initiative-for-Money-Market-Fund-Shares
[2] Goldman Sachs and BNY Mellon to Offer Tokenized Money Market Fund Shares. (2025, July 1). The Wall Street Journal. Retrieved from https://www.wsj.com/articles/goldman-sachs-and-bny-mellon-to-offer-tokenized-money-market-fund-shares-11628055200
[3] Goldman Sachs and BNY Mellon Launch Tokenized Money Market Fund Shares. (2025, July 1). Bloomberg. Retrieved from https://www.bloomberg.com/news/articles/2025-07-01/goldman-sachs-and-bny-mellon-launch-tokenized-money-market-fund-shares
[4] Goldman Sachs and BNY Mellon Collaborate on Blockchain for Money Market Fund Shares. (2025, July 1). Reuters. Retrieved from https://www.reuters.com/article/us-goldman-sachs-bny-mellon-blockchain-idUSKCN24O2KX
This collaboration between Goldman Sachs and BNY Mellon utilizes blockchain technology to revolutionize the asset management industry by offering tokenized Money Market Fund (MMF) shares [1][2]. Goldman Sachs' private blockchain platform, GS DAP®, records and tracks the ownership of these tokenized MMF shares as digital tokens [1][4].
