Goldman Sachs and BNY Launch Blockchain-Based Money Market Fund
The $7.1 trillion money market industry is on the cusp of a digital revolution, thanks to a new system developed by Goldman Sachs and Bank of New York Mellon.
The platform allows institutional investors to purchase tokenized money market funds, marking a significant advancement in the digitization of traditional financial instruments.
The initiative enables BNY clients to invest in money market funds with ownership recorded on Goldman's blockchain platform. This means that BNY clients can now access and manage their investments more efficiently and securely.
Major fund companies including BlackRock, Fidelity Investments, and Federated Hermes have joined the project alongside Goldman and BNY's asset management divisions.
The tokenized funds offer yield payments to owners, unlike stablecoins, making them attractive to hedge funds, pensions, and corporations for cash management.