US EditionGoldman, BNY Team up to Launch Tokens Tied to Money Market Funds
NEW YORK, UNITED STATES, JUL 22 – Goldman Sachs and BNY Mellon offer tokenized money market funds with real-time settlement and 24/7 trading, targeting $7 trillion institutional assets to improve liquidity and reduce costs.
- On Wednesday, Goldman Sachs Group, Inc. and The Bank of New York Mellon Corporation announced the launch of the first tokenized money market fund solution in the U.S., with subscription via BNY’s LiquidityDirect platform integrated with GS DAP blockchain network.
- Amid evolving stablecoin regulations under the GENIUS Act, the initiative was prompted by the Act's framework to address two-day settlement delays, which are explained by the need for modernization.
- Tokenization enables 24/7 trading and faster settlement cycles, boosting liquidity for investors, as the private permissioned blockchain network automates fund functions using smart contracts.
- Major asset managers including BlackRock, BNY Investments Dreyfus, Federated Hermes, Fidelity Investments and Goldman Sachs Asset Management joined, while Laide Majiyagbe called mirrored tokenization a first step.
- With evolving regulatory frameworks, the project may migrate to public blockchains, potentially expanding global adoption as regulations develop.
47 Articles
47 Articles
Goldman Sachs and BNY Mellon Team Up for Tokenized Money Market Funds
Bank of New York Mellon (BNY) and Goldman Sachs (GS) are rolling out tokenized money market funds for clients as digital asset adoption is accelerating.BNY, which is one of the oldest and largest custody banks in the world overseeing $53 trillion of assets, announced on Wednesday to start offering institutional investors token versions of money market fund share classes via its LiquidityDirect platform. Ownership records and transactions are rec…
Goldman, BNY team up to launch tokens tied to money market funds
Goldman Sachs and BNY have joined hands 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's LiquidityDirect platform, with a digital record of th
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