Goldman Sachs, BNY Mellon Collaborate on Tokenized Money Market Product
BNY Mellon Corporation and Goldman Sachs Group are collaborating to create a tokenized money market product aimed at enhancing the utility and transferability of money market fund (MMF) shares. The product will utilize technology from Goldman Sachs, allowing fund managers to subscribe to MMF shares via BNY’s Liquidity Direct and digital assets platform, with mirrored tokens on Goldman Sachs's Digital Asset Platform (DAP). Initial participants include BlackRock, BNY Investments Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management, with BNY Mellon maintaining official records and settlements. This initiative represents a step towards a more digital financial system, enabling MMF shares to serve as collateral and facilitating seamless transferability. The trend of tokenizing assets is growing, with firms like Robinhood and Coinbase also exploring similar solutions.
