- Goldman Sachs and BNY Mellon launch blockchain-based platform for institutional clients to buy tokenized money market shares seamlessly.
- Tokenized shares represent ownership as digital certificates on blockchain while BNY retains traditional records, easing institutional technology adoption.
Goldman Sachs and Bank of New York Mellon announced a new platform that records tokenized money market fund shares on blockchan. Institutional clients will see ownership reflected as digital tokens on Goldman’s ledger while BNY Mellon continues to log traditional entries. This setup aims to blend familiar processes with new technology, letting large investors explore digital channels without abandoning existing systems.
“We have created the ability for our clients to invest in tokenized money market share classes across a number of fund companies,” said Laide Majiyagbe, BNY’s global head of liquidity, financing and collateral. “The step of tokenizing is important, because today that will enable seamless and efficient transactions, without the frictions that happen in traditional markets.”
Money market funds invest in short-term government bills, commercial paper and repurchase agreements. Since the Federal Reserve began raising rates in 2022, these funds attracted about $2.5 trillion in inflows. Tokenized versions of these shares pay interest and trade on a twenty-four-hour network. That feature appeals to hedge funds, pension managers and corporate treasurers who treat the tokens as cash equivalents that yield returns.
Last week’s GENIUS Act created a clear legal framework for stablecoins in the United States. Major banks such as JPMorgan Chase, Citigroup and Bank of America have started pilot programs for stablecoin payments. Tokenized money market funds differ because they offer a built-in yield alongside the stability of government-backed assets.
The new platform also promises faster collateral transfers
Currently, traders must sell fund shares, wait for settlement and then move cash. Under the tokenized model, they transfer tokens instantly, any hour of the day. Mathew McDermott, head of digital assets at Goldman Sachs, called the system “a chance to create real utility in an area that lacked it.” Laide Majiyagbe, who leads liquidity solutions at BNY Mellon, added that tokenization “removes market frictions and streamlines transactions.”
“The sheer scale of this market just offers a huge opportunity to create a lot more efficiency across the whole financial plumbing,” McDermott said. “That is what’s really powerful, because you’re creating utility in an instrument where it doesn’t exist today.”
In practice, this service could reshape how institutions handle large cash positions. It could cut settlement times from days to seconds and offer consistent access beyond standard market hours. As a result, tokenized money market funds may become the go-to instrument for cash management.
