Goldman Sachs and BNY Mellon Launch Tokenized Money Market Funds on Blockchain to Modernize Institutional Investing and Cut Settlement Times

Goldman Sachs and Bank of New York Mellon (BNY Mellon) have partnered to introduce tokenized money market funds (MMFs) on a blockchain platform, marking a significant step toward modernizing institutional investing. The initiative, launched in July 2025, leverages Goldman Sachs’ Digital Asset Platform (GS DAP) to tokenize select MMFs, enabling real-time settlement, transparent ownership tracking, and enhanced liquidity for institutional clients [1]. BNY Mellon’s liquidity products, including its LiquidityDirect platform, now offer these tokenized assets, with ownership and transactions recorded on an immutable distributed ledger [2].

The collaboration aims to address long-standing inefficiencies in traditional MMF settlement processes, which typically take days. By tokenizing these funds, the firms reduce settlement times to near real-time while minimizing counterparty risk and providing granular visibility into holdings [3]. BlackRock, Fidelity, and Federated Hermes have joined as initial participants, signaling broader industry support for blockchain-based solutions [4].

Goldman Sachs’ head of digital assets, Mathew McDermott, emphasized that tokenization unlocks new utility for MMF shares, including their use as collateral in real-time transactions. “Tokens representing MMF shares on GS DAP could facilitate seamless transfers and expand the role of these assets in the digital economy,” he stated [5]. BNY Mellon’s Laide Majiyagbe highlighted the firm’s commitment to “scalable and secure solutions that shape the future of finance,” reflecting a strategic pivot toward blockchain integration [6].

The MMF industry, currently valued at $7.1 trillion, represents a key target for tokenization. Analysts note that this move aligns with growing trends toward digitizing financial assets, which could streamline capital markets and reduce operational costs for institutional investors [7]. However, the initiative’s success will depend on adoption rates and regulatory clarity around tokenized assets. Legacy institutions are increasingly adopting decentralized technologies, with Goldman Sachs and BNY Mellon leveraging their combined expertise to set a precedent in the sector [8].

This project builds on earlier collaborations between the two firms. In May 2025, BNY Mellon and Goldman Sachs outlined plans to tokenize MMFs to meet evolving demands in digital capital markets [9]. By June 2025, details emerged about the platform’s blockchain-based ownership records, underscoring its potential to modernize a traditionally slow-moving asset class [10]. The full rollout in July 2025 highlights their commitment to innovation, with analysts predicting broader implications for asset management and capital market efficiency [11].

Tokenized MMFs may pave the way for digitizing other complex asset classes, such as real estate and private equity, by demonstrating the viability of blockchain in institutional finance. For now, the partnership between Goldman Sachs and BNY Mellon represents a pivotal moment in mainstreaming blockchain technology, redefining how traditional financial infrastructure interacts with digital innovation [12].

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 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

[3] [BNY, Goldman Sachs Launch Tokenized Money Market Funds]

https://www.marketsmedia.com/bny-goldman-sachs-launch-tokenized-money-market-funds/

[4] [Goldman and BNY Team Up to Tokenize $7 Trillion Money Market]

https://www.cryptopolitan.com/goldman-bny-tokenize-money-market-industry/

[5] [Goldman Sachs, BNY Mellon launch tokenized money market funds on blockchain]

https://coinmarketcap.com/community/articles/6880f1e3e0a661404358915a/

[6] [BNY, Goldman Sachs Partner to Tokenize Money Market Funds]

https://www.ledgerinsights.com/bny-goldman-sachs-partner-to-tokenize-money-market-funds/

[7] [Goldman and BNY Team Up to Tokenize $7 Trillion Money Market]

https://www.cryptopolitan.com/goldman-bny-tokenize-money-market-industry/

[8] [BNY, Goldman Sachs Launch Tokenized Money Market Funds]

https://www.marketsmedia.com/bny-goldman-sachs-launch-tokenized-money-market-funds/

[9] [BNY, Goldman Sachs Partner to Tokenize Money Market Funds]

https://www.ledgerinsights.com/bny-goldman-sachs-partner-to-tokenize-money-market-funds/

[10] [Goldman Sachs and BNY Mellon Tokenize Money Market Funds]

https://coinpedia.org/crypto-live-news/goldman-sachs-and-bny-mellon-tokenize-money-market-funds/

[11] [Goldman Sachs and BNY Bring $7.1T Money Market Funds to Digital Tokens]

https://www.banklesstimes.com/articles/2025/07/23/goldman-sachs-and-bny-bring-7-1t-money-market-funds-to-digital-tokens/

[12] [Goldman and BNY Team Up to Tokenize $7 Trillion Money Market]

https://www.cryptopolitan.com/goldman-bny-tokenize-money-market-industry/