Goldman Sachs and BNY Mellon Launch Tokenized Money Market Funds for Institutions

Goldman Sachs and Bank of New York Mellon have introduced a blockchain-based platform enabling institutional clients to access tokenized money market funds. The initiative targets the $7.1 trillion market, leveraging Goldman's distributed ledger technology for real-time ownership tracking and BNY Mellon's custody infrastructure.

BlackRock, Fidelity Investments, and Federated Hermes are among the initial participants offering tokenized share classes. The product caters to hedge funds, pension funds, and corporate treasuries seeking enhanced liquidity management capabilities.

The collaboration between BNY's LiquidityDirect and Goldman's Digital Asset Platform represents a strategic MOVE to modernize traditional finance instruments. Tokenization unlocks potential applications in collateral management and settlement efficiency - key pain points in current institutional workflows.