Goldman Sachs and BNY Mellon Launch Tokenized Money Market Funds

Bank of New York Mellon (BNY) and Goldman Sachs (GS) are pioneering institutional adoption of digital assets with the rollout of tokenized money market funds. BNY, custodian of $53 trillion in assets, will offer tokenized share classes via its LiquidityDirect platform, leveraging Goldman Sachs' blockchain for transaction recording.

The collaboration introduces a new tokenization manager role at BNY, responsible for minting and burning tokens that mirror traditional fund shares. "Tokenization eliminates traditional market frictions, enabling seamless transactions," said Laide Majiyagbe, BNY's global head of liquidity.

Tokenized U.S. Treasury products have seen explosive growth, with the market surpassing $7 billion this year according to RWA.xyz data. Major institutions including BlackRock and Fidelity have already signed on for the service.