Tokenized Money Market Funds Launched by Goldman Sachs and BNY

Goldman Sachs and Bank of New York Mellon have joined forces to create a system allowing institutional investors to purchase tokenized money market funds. This development marks a significant step in digitizing the $7.1 trillion money market industry.

The new system enables BNY clients to invest in money market funds with ownership recorded on Goldman's blockchain platform, providing seamless and efficient transactions without traditional market frictions.

Participating major fund companies include BlackRock, Fidelity Investments, and Federated Hermes. The initiative offers tokenized funds that generate yield payments to owners, unlike stablecoins, making them attractive to hedge funds, pensions, and corporations for cash management.