Goldman Sachs and BNY Mellon have teamed up to launch digital tokens that mirror shares of money market funds, deepening Wall Street’s push to bring blockchain technology into traditional finance.
Investors can now buy and sell money market fund shares on BNY Mellon’s LiquidityDirect platform, with a digital record of those shares created on Goldman Sachs’ blockchain system, the two financial giants said on Wednesday.
This move marks an early step toward modernizing the infrastructure that underpins most of the financial ecosystem. If adopted broadly, it could make it easier and faster for institutional investors to use these assets as collateral and reduce trade settlement times.
BlackRock, BNY Mellon Investment Management (Dreyfus), Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management are among the companies participating in the initial rollout.
Though a subject of debate, tokenization’s potential to drastically reshape the investing landscape has drawn strong interest.
In January, Apollo teamed up with Securitize to launch a feeder fund that would channel capital from crypto-native investors into its global credit fund.
The moves coincide with surging optimism in the crypto industry, which has rallied in recent months and gained fresh momentum after the Genius Act passed earlier this month.
