Tokenized Money Market Funds Launch

Summary

BNY Mellon and Goldman Sachs announced a collaboration to launch a tokenized Money Market Funds (MMF) solution, marking a first-of-its-kind initiative in the U.S. institutional financial services sector.
The partnership leverages blockchain technology developed by Goldman Sachs (GS DAP) and integrates with BNY’s LiquidityDirect and Digital Asset platforms.
Initial participants in the launch include BlackRock, BNY Investments Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management.
The initiative is designed to enhance utility and transferability of MMF shares, support evolving client needs, and facilitate future opportunities for digital collateral and real-time finance.

BNY Mellon will use Goldman Sachs’ blockchain technology (GS DAP) to maintain a record of customer ownership for select Money Market Funds.
The solution allows MMF subscriptions and redemptions via BNY’s LiquidityDirect platform, with mirrored record tokenization on GS DAP.
Mirror tokens are created to represent MMF share value, enabling potential future use as collateral and more seamless transferability.
BNY continues to be responsible for official books, records, and settlements for the funds, while enabling the digital representation of assets.
The partnership aims to position both firms at the forefront of the transition towards a digital, real-time financial architecture.

Initial launch participants include BlackRock, BNY Investments Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management.
Investors benefit from the ability to subscribe and redeem MMF shares through an integrated platform, combining traditional recordkeeping with blockchain-based mirror tokens.

BNY's Global Head of Liquidity, Financing, and Collateral highlighted the move as a key first step in transitioning to digital asset infrastructure, emphasizing security, scalability, and client empowerment.
Goldman Sachs’ Global Head of Digital Assets stated that tokenization unlocks new utilities for MMF shares, especially as collateral, and reinforces both firms’ leadership in digital assets innovation.
This collaboration underscores both firms’ roles as bridges between traditional finance and emerging digital technologies.

Launch of tokenized MMF solution — Joint decision by BNY and Goldman Sachs to deploy a blockchain-based infrastructure for institutional money market funds, aimed at enhancing utility, ease of transfer, and future collateralization opportunities.

No explicit open questions; ongoing monitoring of adoption, regulatory responses, and client feedback expected as the initiative progresses.