A press release titled, "BNY and Goldman Sachs Launch Tokenized Money Market Funds Solution" explains, "The Bank of New York Mellon Corporation ('BNY') (BK), a global financial services company, and the Goldman Sachs Group, Inc. (GS) today 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 (MMFs), 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, BNY Investments Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management will participate in the initial launch." (See the info sheet on LiquidityDirect here.)
It continues, "Investors can subscribe and redeem MMF shares through BNY's market-leading LiquidityDirect platform, which offers connectivity to GS DAP via integration with BNY's Digital Assets platform. Mirror tokens of the MMF shares are created utilizing GS DAP, an award-winning technology platform developed by Goldman Sachs Digital Assets, which leverages solutions developed by Digital Asset."
Laide Majiyagbe, Global Head of Liquidity, Financing and Collateral at BNY, comments, "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. 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."
The release says, "BNY will continue to maintain the official books, records, and settlements for the funds within currently approved guidelines while also enabling mirror tokens on GS DAP with the aim of creating future opportunities globally."
Goldman Sachs' Global Head of Digital Assets Mathew McDermott adds, "Using tokens representing the value of shares of Money Market Funds on GS DAP would enable us to unlock their utility as a form of collateral and open up more seamless transferability in the future. We are excited about this strategic collaboration with BNY in our journey towards the longer-term vision for GS DAP and as we continue to lead and innovate in the digital assets space."
The Wall Street Journal writes on the news in its article, "Goldman and BNY Team Up to Tokenize Money-Market Funds." They state, "Goldman Sachs and Bank of New York Mellon are bringing the technology that underpins crypto to an investing stalwart: the humble money-market fund. The two banking giants said Wednesday they are partnering to launch digital tokens that confer ownership of money-market funds managed by many of the biggest investment firms, including BlackRock, Fidelity Investments and Federated Hermes, as well as their own asset-management arms."
The piece tells us, "BNY, the world's largest provider of administrative services to money managers, will offer the tokenized funds to its investment-firm and corporate clients over its LiquidityDirect cash-management platform. Goldman will in turn record and track the ownership of the tokens on its private blockchain, with BNY keeping the funds' books."
They quote, Peter Crane, president of Crane Data, "It's a big deal because they are all major players. This is a substantial slice of the whole money-fund marketplace. There's no turning back from tokenization from here."
The Journal says, "The Genius Act, the landmark measure that creates a regulatory framework for tokenized dollars known as stablecoins and signed into law by President Trump last week, is unleashing a wave of efforts to tokenize everything from individual stocks to funds and real assets."
They explain, "Money-market funds, an investing staple popular with both institutions and individual investors, hold baskets of relatively safe short-term debt securities and typically offer a higher yield than bank deposits. Tokenization can help the managers of these funds cut costs and reduce the time it takes to settle transactions. And proponents say the tokens may make it easier for investors to pledge their fund holdings as collateral, or buy fractional shares of the fund. Skeptics argue that it could bring crypto's volatility and cybersecurity risks to the traditional financial world."
The Journal states, "The total assets in U.S. money-market funds stood at approximately $7.1 trillion as of mid-July, compared with about $6.9 trillion at the start of the year, according to the Investment Company Institute. Tokenized money funds have been a hit with crypto traders, who have been in search of higher-yielding places to store their cash. Stablecoins don't pass on interest income to its holders."
Finally, they write, "JPMorgan was the first global bank to build a blockchain-based platform that can tokenize and transact assets. Goldman launched a tokenization platform in late 2022 to help clients issue bonds. And some money managers, including BlackRock and Franklin Templeton, have launched tokenized money funds on public blockchains."
For more on Tokenized Money Market Funds, see these recent Crane Data News stories: "Circle on Tokenized Money Fund (USYC); BNP Paribas on Tokenized MMFs" (7/23/25), "BNY, State Street Talk Stablecoins, Tokenized MMFs on Q2 Calls; Schwab" (7/21/25), "Bank of France on Tokenized Money Market Funds, Financial Stability" (7/3/25), "Stradley Podcast Talks Tokenization and Stablecoins for Fund Managers" (6/26/25) and "Circle Says Firms Will Move from Stablecoins to Tokenized Money Funds" (6/12/25). See too: CNBC's "Goldman Sachs and BNY join forces to transform $7.1 trillion money market industry with digital tokens."
