Goldman Sachs and BNY Mellon Pioneer U.S. Tokenized Money Market Funds on Blockchain

Wall Street giants Goldman Sachs and Bank of New York Mellon have launched the first U.S. tokenized money market funds, marking a watershed moment for institutional blockchain adoption. The new system leverages BNY's LiquidityDirect platform and Goldman's GS DAP blockchain to create digital mirror tokens of traditional fund shares, enabling near-instant settlement and collateralization.

Major asset managers including BlackRock, Fidelity, and Federated Hermes have already adopted the platform. The innovation addresses a critical pain point in the $7.1 trillion money market sector, where traditional settlement cycles often require two business days. Tokenization slashes this latency while maintaining BNY's existing fund administration framework.

"We've created interoperable tokenized share classes across multiple fund families," said BNY's global liquidity head Laide Majiyagbe. The solution demonstrates how distributed ledger technology can extract efficiency from legacy systems without displacing incumbent infrastructure - a blueprint likely to influence future institutional blockchain deployments.