Dreyfus Token-Enabled Shares Live
Dreyfus's Head of Distribution Stephen Gill posted a statement on LinkedIn, saying, "Thrilled to celebrate the launch of BNY Investments Dreyfus Treasury Securities Cash Management Token-Enabled share class (TKNXX) as part of the new BNY and Goldman Sachs collaboration to offer tokenized money market funds via the LiquidityDirect platform. I am proud to be part of #BNY as we continue to bring the institutional market more firmly into the digital arena." (See here for information on the Dreyfus Treasury Securities Cash Management Token-Enabled Shares (TKNXX), see here for Crane Data's July 24 News, "BNY's LiquidityDirect Portal Announces Plans to Tokenize Money Funds," see the press release here, "BNY and Goldman Sachs Launch Tokenized Money Market Funds Solution," and see Bloomberg's, "Money Funds Take Major Leap in Tokenization Deal, JPMorgan Says.") The Prospectus filing for TKNXX, which will have an expense ratio of 0.18% after fee waivers, says under "Purchase and Sale of Fund Shares," "This prospectus offers Token-Enabled shares. The fund's Token-Enabled shares are designed generally for institutional investors, acting for themselves or in a fiduciary, advisory, agency, brokerage, custodial or similar capacity. Token-Enabled shares of the fund also may be purchased directly by individuals. Investors are required to purchase Token-Enabled shares through The Bank of New York Mellon, an affiliate of BNYIA, on The Bank of New York Mellon's platform. For information on how to purchase Token-Enabled shares, please contact your BNY representative. In general, the fund's minimum initial investment for Token-Enabled shares is $10 million with no minimum subsequent investment, unless: (a) the investor has invested at least $10 million in the aggregate among the fund and any of the Cash Management Funds, the Preferred Funds or Dreyfus Treasury and Agency Liquidity Money Market Fund; or (b) the investor has, in the opinion of BNY Institutional Services, adequate intent and availability of assets to reach a future aggregate level of investment of $10 million in such funds. You may sell (redeem) your shares on any business day by contacting your BNY representative. The fund's transfer agent maintains the official books and records of ownership of Token-Enabled shares, with such ownership reflected as an omnibus account for The Bank of New York Mellon (The Bank of New York Mellon Omnibus Account). The Bank of New York Mellon will maintain the share ownership records of its clients using its traditional books and records methods, and also will mirror such share ownership via a blockchain system. Assets are represented on the blockchain through "tokens," which are a digital representation of an asset and are built into the blockchain. Clients of The Bank of New York Mellon will not have access to ownership records, and will not be able to transact, directly on the blockchain." The filing adds, "The Bank of New York Mellon will mirror the ownership of its clients' Token-Enabled shares on a blockchain implemented by a financial institution (Blockchain). The Blockchain is a private, permissioned blockchain. Only authorized users, such as The Bank of New York Mellon, will have access to the Blockchain. In its capacity as platform operator, the financial institution will operate the Blockchain as a technical platform provider. The Bank of New York Mellon, and not the fund or the fund's transfer agent, will be responsible for its clients' ownership records on the Blockchain. Clients of The Bank of New York Mellon will not have access to ownership records, and will not be able to transact, directly on the Blockchain. The fund and the fund's transfer agent will only be responsible for maintaining share ownership of Token-Enabled shares represented on its books and records through The Bank of New York Mellon Omnibus Account. The fund will not bear any costs associated with the use of the Blockchain. The recording of the ownership of Token-Enabled shares of the fund by The Bank of New York Mellon on the Blockchain will not affect the fund's investments. The fund is a 'government money market fund,' as that term is defined in Rule 2a-7, and as such is required to invest at least 99.5% of its total assets in securities issued or guaranteed as to principal and interest by the U.S. government or its agencies or instrumentalities, repurchase agreements collateralized solely by cash and/or government securities, and cash. The fund typically invests exclusively in U.S. Treasury securities. The fund will not invest in any cryptocurrencies (referred to as, among other things, virtual currencies)."
