Goldman Sachs and BNY Mellon Launch Blockchain-Based Tokenized MMF Platform for 24/7 Trading

Goldman Sachs Group Inc. and Bank of New York Mellon Corp. have launched a blockchain-based platform to tokenize money market fund (MMF) shares, enabling institutional investors to trade and settle these assets 24/7 with real-time transfers. The system, built on Goldman Sachs’ GS DAP blockchain, creates a mirrored tokenized record of MMF ownership while maintaining traditional settlement processes within regulatory frameworks. This marks the first U.S. initiative offering institutional access to tokenized MMF shares via BNY Mellon’s LiquidityDirect and Digital Asset platforms. Participating fund managers include BlackRock, Fidelity Investments, and Goldman Sachs Asset Management, signaling growing demand for blockchain-driven traditional finance solutions [1].

The platform allows investors to hold tokens representing MMF shares, which can serve as collateral and facilitate instant transfers. Unlike stablecoins, these tokens generate passive income directly from underlying assets such as U.S. Treasuries, providing stable value and yield [2]. By tokenizing MMFs, the firms aim to modernize liquidity management and collateral practices in the $7.1 trillion U.S. money market fund industry. Greg Grimaldi, co-head of Goldman’s fund solutions, emphasized that the blockchain enables “real-time, programmable transfer” of fund shares, while BNY Mellon’s Stephanie Pierce highlighted reduced delays in cash and collateral movement [3].

The hybrid model preserves official fund records through BNY Mellon while leveraging GS DAP’s blockchain for tokenized records. This approach balances compliance with existing regulations and operational efficiency, such as mitigating counterparty risk through instantaneous ownership transfers [4]. Matthew McDermott of Goldman Sachs noted the platform’s potential to “unlock MMF shares as a form of collateral,” redefining collateral management across asset classes [5].

This initiative aligns with broader digitization trends in capital markets. The collaboration builds on June 2025 plans to digitize 24/7 MMF trading, accelerating post-2008 regulatory reforms aimed at modernizing fund mechanics [6]. Analysts suggest the move could set a precedent for tokenizing other traditional assets, particularly in sectors requiring real-time settlement like treasuries and repo markets [7]. However, challenges remain in integrating tokenized assets with legacy systems and ensuring cross-custodian and regulatory interoperability.

The launch reflects Wall Street’s evolving embrace of blockchain technology beyond cryptocurrency. By offering continuous trading and enhanced transparency, the platform addresses institutional demands for frictionless liquidity and operational efficiency. As major asset managers validate the technology’s scalability, the initiative underscores the growing intersection of blockchain and traditional finance, potentially influencing future central bank discussions on digital currencies [8].

Sources:

[1] [BNY and Goldman Sachs Launch Tokenized Money Market Funds Solution](https://www.bny.com/corporate/global/en/about-us/newsroom/company-news/bny-and-goldman-sachs-launch-tokenized-money-market-funds-solution.html)

[2] [Goldman, BNY Mellon to Launch Tokenized Money Market Funds](https://cointelegraph.com/news/goldman-bny-tokenized-money-market-funds-launch)

[3] [Goldman Sachs, BNY to Record Money Market Funds on Blockchain](https://www.bloomberg.com/news/articles/2025-07-23/goldman-sachs-bny-to-record-money-market-funds-on-blockchain)

[4] [BNY, Goldman Sachs Team to Tokenize Money Market Funds](https://www.pymnts.com/partnerships/2025/bny-goldman-sachs-team-tokenize-money-market-funds/)

[5] [Goldman and BNY Team Up to Tokenize $7 Trillion Money Market Industry](https://www.cryptopolitan.com/goldman-bny-tokenize-money-market-industry/)

[6] [Alexander Hamilton’s Bank and Goldman Embrace Digital Tokens](https://finance.yahoo.com/news/alexander-hamiltons-bank-and-goldman-embrace-digital-tokens-to-trade-money-markets-247-152518243.html)

[7] [Tokenized TradFi: BNY, Goldman Launch Blockchain Solution](https://www.pymnts.com/blockchain/2025/making-sense-of-tokenized-tradfi-as-bny-goldman-launch-blockchain-solution/)

[8] [Goldman Sachs and BNY Mellon Join Forces in Tokenized Money Market Funds](https://www.proactiveinvestors.com/companies/news/1075281/goldman-sachs-and-bny-mellon-join-forces-in-tokenized-money-market-funds-1075281.html)