Wall Street Titans Greenlight Tokenized Fund Investments—Crypto Just Got a Golden Stamp
Traditional finance finally caves—with style. Major Wall Street players are rolling out the red carpet for tokenized investment vehicles, merging legacy systems with blockchain's disruptive potential.
No more excuses. The institutional floodgates are creaking open as asset managers pivot toward on-chain exposure. Expect custody solutions, compliance frameworks, and—of course—hefty fee structures dressed as 'innovation.'
One cynical footnote: Watch how fast these same firms that mocked crypto now rebrand as 'blockchain pioneers' when quarterly earnings need a boost.
BNY and Goldman Sachs team up to merge blockchain with traditional funds
Wall Street firms BNY Mellon and Goldman Sachs revealed a joint initiative to introduce blockchain technology to the traditional money market fund (MMF) sector.
The firms stated that clients of BNY Mellon will be able to invest in money market funds, while their ownership records will be stored on Goldman Sachs' DAP blockchain.
"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, in a press release on Wednesday.
The initiative will include participation from firms such as BlackRock, Fidelity Investments and Federated Hermes, alongside the asset management arms of BNY and Goldman. BNY plans to maintain responsibility for the official recordkeeping and settlement of the funds under existing regulatory frameworks, while also supporting the issuance of mirrored token representations on Goldman Sachs' DAP blockchain.
"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," said Mathew McDermott, Global Head of Digital Assets at Goldman Sachs.
JPMorgan has also been making a similar push into the tokenized market in partnership with ONDO Finance, following the recent testing of tokenized securities transfers via its blockchain division Kinexys.
Crypto exchanges, including Robinhood, Kraken, Bybit and Gemini, have also begun offering tokenized securities to their customers. The push follows President Donald TRUMP signing the GENIUS Act last Friday, which establishes a regulatory framework for stablecoins.
