Goldman Sachs BNY Mellon Launch Tokenized Money Market Funds with Blockchain Real-Time Settlements

Goldman Sachs and BNY Mellon have introduced a tokenized money market funds (MMF) solution, marking a significant step in integrating blockchain technology into institutional finance. The initiative enables sophisticated investors to access and manage fractional shares of MMFs in real time via a decentralized ledger system, leveraging Goldman’s private blockchain infrastructure and BNY’s custody capabilities [1][2]. This collaboration aims to enhance liquidity, transparency, and efficiency by digitizing fund settlement processes, which traditionally take one to three business days. Tokenized MMF shares are created on Goldman’s Digital Asset Platform (GS DAP) and distributed through BNY’s LiquidityDirect platform, facilitating 24/7 trading and near-instant settlements [3]. The system mirrors existing fund structures while ensuring compliance with regulatory frameworks, offering investors fractional ownership options without altering the underlying assets [4].

Initial participants in the initiative include Dreyfus (a BNY subsidiary), Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management. These firms will issue tokenized versions of their MMFs, with BNY Mellon maintaining ownership records on the blockchain [5]. Laide Majiyagbe, BNY Mellon’s Head of Liquidity, Funding, and Collateral, described the move as a “first step in the transition toward a digital, real-time financial architecture,” emphasizing scalability and security [6]. The initiative aligns with broader industry trends toward tokenization, particularly following the U.S. adoption of the GENIUS Act, which provided regulatory clarity for stablecoins. This legislative development has encouraged traditional institutions to experiment with digital assets [7].

Ethereum remains central to the tokenization infrastructure, though the initiative does not introduce new tokens. Instead, it digitizes access and settlement mechanisms, minimizing regulatory hurdles while demonstrating blockchain’s potential to streamline asset servicing [8]. Analysts note that the success of this model could influence adoption in other asset classes, though challenges like interoperability and market education persist [9]. The partnership combines Goldman’s digital asset expertise with BNY’s leadership in custody services, positioning both firms to capture a growing share of the $7 trillion fund market [10]. By targeting inefficiencies in asset liquidity, the solution provides institutional clients with flexible investment tools while reinforcing Ethereum’s role in institutional asset settlement [11].

George Zarya, Goldman Sachs’ Global Head of Digital Assets, highlighted blockchain’s utility in collateral management, stating the technology could enhance transferability of tokens as collateral in the future [12]. Caroline Butler, BNY Mellon’s Global Head of Liquidity, expressed pride in pioneering the initiative, which could reshape global asset management through blockchain-based fund settlement [13]. The initiative reflects a strategic alignment between two industry leaders: Goldman’s technological capabilities in private market transactions and BNY’s dominance in custody services [14].

Source:

[1] [BNY and Goldman Sachs Launch Tokenized Money Market Funds Solution] (https://www.goldmansachs.com/pressroom/press-releases/2025/bny-goldman-sachs-launch-tokenized-money-market-funds-solution)

[2] [Goldman, BNY team up to launch tokens tied to money market funds] (https://www.reuters.com/markets/wealth/goldman-bny-team-up-launch-tokens-tied-money-market-funds-2025-07-23/)

[3] [BNY Mellon and Goldman Sachs Target $7T Fund Market With Digital Asset Tokenization] (https://news.bitcoin.com/bny-mellon-and-goldman-sachs-target-7t-fund-market-with-digital-asset-tokenization/)

[4] [Goldman Sachs and BNY Launch Tokenized Money Market Funds Blockchain 24/7 Trading Real-Time Settlements] (https://www.ainvest.com/news/goldman-sachs-bny-launch-tokenized-money-market-funds-blockchain-24-7-trading-real-time-settlements-2507/)

[5] [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)

[6] [American Financial Giants Launch Pioneering Tokenized Fund Initiative] (https://coinpaper.com/10120/american-financial-giants-launch-pioneering-tokenized-fund-initiative)

[7] [BNY and Goldman Sachs Launch Tokenized Money Market Funds Solution] (https://www.goldmansachs.com/pressroom/press-releases/2025/bny-goldman-sachs-launch-tokenized-money-market-funds-solution)

[8] [Goldman Sachs and BNY Mellon Launch Tokenized Fund Initiative] (https://coinpaper.com/10120/american-financial-giants-launch-pioneering-tokenized-fund-initiative)

[9] [Goldman, BNY team up to launch tokens tied to money market funds] (https://www.reuters.com/markets/wealth/goldman-bny-team-up-launch-tokens-tied-money-market-funds-2025-07-23/)

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

[11] [Goldman Sachs, BNY Mellon Step into Tokenized Money Market Funds] (https://www.investopedia.com/bny-mellon-and-goldman-sachs-step-into-tokenized-money-market-funds-11777455)

[12] [Goldman Sachs and BNY Launch Tokenized Funds For Big Investors] (https://www.xt.com/en/blog/post/goldman-sachs-and-bny-launch-tokenized-funds-for-big-investors)

[13] [BNY and Goldman Sachs Launch Tokenized Money Market Funds Solution] (https://www.goldmansachs.com/pressroom/press-releases/2025/bny-goldman-sachs-launch-tokenized-money-market-funds-solution)

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