Goldman Sachs, BNY Launch Tokenized Access to $7.1 Trillion Money Market Industry

Wall Street giants Goldman Sachs and BNY Mellon are spearheading a transformative initiative to tokenize money market funds, unlocking institutional access to the $7.1 trillion cash management industry. The project has attracted heavyweight participants including BlackRock, Fidelity Investments, and Federated Hermes.

Unlike stablecoins that merely track fiat values, these tokenized funds generate yield—a feature already drawing interest from hedge funds, pensions, and corporate treasuries. The underlying blockchain technology could eventually enable direct inter-institutional transfers without cash conversion, potentially revolutionizing liquidity management.

The timing aligns with regulatory tailwinds. Recent passage of the GENIUS Act under the TRUMP administration has established a federal framework for stablecoins, prompting JPMorgan, Citi, and Bank of America to explore blockchain-based payment systems. This institutional momentum signals a tipping point for tokenization's role in traditional finance.