Goldman Sachs (NYSE:GS) and BNY Mellon (NYSE:BK) have announced they will soon offer tokenized money market funds.
Tokenization, or the digitization of an asset, refers to the use of blockchain technology to enhance the management and reduce the costs of real-world assets. While the blockchain sector has long predicted the tokenization of securities and other investible assets, it took the Trump Administration’s embrace of digital asset innovation to release establishment firms to pursue new digitized products.
According to a company statement, BNY will use Goldman’s blockchain to maintain records of ownership of certain money market funds. The statement claims this is a “significant step towards enhancing the utility and transferability of existing MMF shares.”
BNY oversees $55.8 trillion in assets under custody and/or administration and $2.1 trillion in assets under management.
BlackRock, BNY Investments Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management will all participate in the launch.
Laide Majiyagbe, Global Head of Liquidity, Financing and Collateral at BNY, says as the financial system transitions to real time, digital architecture, they are committed to secure solutions that shape the future of finance.
“Mirrored tokenization of MMF shares is a first step in this transition, and we are proud to be at the forefront of this first-of-its-kind initiative. Our collaboration with Goldman Sachs Digital Assets highlights our role as a trusted bridge between traditional finance and emerging technologies – empowering clients to navigate this transformation with confidence.”
While this may be a small step toward tokenizing various products, the fact that an establishment bank like BNY is working with Goldman is indicative that digital assets will soon become ubiquitous.
