Goldman Sachs and BNY Mellon to offer tokenized money market funds (CNBC)

Goldman Sachs and BNY Mellon to offer tokenized money market funds (CNBC)

Goldman Sachs and Bank of New York Mellon (BNY) have announced a groundbreaking initiative to offer tokenized money market funds to institutional investors. This move marks a significant step in the digital transformation of the $7.1 trillion money market industry.

According to executives from both firms, clients of BNY, the world's largest custody bank, will be able to invest in tokenized money market funds whose ownership will be recorded on Goldman's blockchain platform. This development is part of a broader trend towards digital assets, following the recent passage of the GENIUS Act, which regulates stablecoins in the U.S. [1]

The project has already secured commitments from major fund titans such as BlackRock, Fidelity Investments, and Federated Hermes, as well as the asset management arms of Goldman Sachs and BNY. The banks believe that tokenizing money market funds will enable seamless and efficient transactions, reducing the frictions inherent in traditional markets.

The tokenized money market funds will pay owners a yield, making them an attractive option for hedge funds, pensions, and corporations seeking to park their cash. This development could set the foundation for a future where money market funds are traded in a real-time, always-on digital ecosystem, facilitating transferability between financial intermediaries without the need for liquidation into cash.

This story is developing, and more details are expected to emerge in the coming weeks. Stay tuned for updates.

References:
[1] https://www.cnbc.com/2025/07/23/goldman-sachs-bny-money-market-fund-digital-tokens.html