Stocks
Goldman Sachs and BNY Launch Tokenized Money Market Fund System
Goldman Sachs and Bank of New York Mellon have partnered to create a system for institutional investors to purchase tokenized money market funds, marking a significant step in digitizing the $7.1 trillion industry.
The initiative allows BNY clients to invest in money market funds with ownership recorded on Goldman's blockchain platform, providing yield payments to owners, unlike stablecoins.
Major fund companies including BlackRock and Fidelity Investments have joined the project alongside Goldman and BNY's asset management divisions.
According to executives from both firms, the technology could eventually enable direct transfers between financial intermediaries without liquidating funds into cash first.