BNY and Goldman Sachs launch tokenised MMFs solution
23 July 2025 US
Image: YiuCheung/stock.adobe.com
The Bank of New York Mellon Corporation and the Goldman Sachs Group have collaborated on a tokenised money market funds (MMFs) solution.
Through the partnership, BNY will employ blockchain technology developed by Goldman Sachs to maintain a record of customers鈥� ownership of select MMFs, in a step towards enhancing the utility and transferability of existing MMF shares.
According to BNY, the combined solution marks 鈥渢he first time鈥� in the US that fund managers have enabled subscription for shares of their MMFs via the firm鈥檚 LiquidityDirectSM and Digital Asset platforms.
The corresponding value will be represented through mirrored record tokenisation utilising GS DAP, a technology platform developed by Goldman Sachs Digital Assets, the firm adds.
Laide Majiyagbe, global head of liquidity, financing, and collateral at BNY, says: 鈥淢irrored tokenisation 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.
鈥淥ur collaboration with Goldman Sachs Digital Assets highlights our role as a trusted bridge between traditional finance and emerging technologies 鈥� empowering clients to navigate this transformation with confidence.鈥�
BlackRock, BNY Investments Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management will participate in the initial launch.
Investors can subscribe and redeem MMF shares through BNY鈥檚 LiquidityDirectSM platform, which offers connectivity to GS DAP via integration with BNY鈥檚 Digital Assets platform.
Mirror tokens of the MMF shares are created utilising GS DAP, which leverages solutions developed by Digital Asset.
BNY says it will continue to maintain the official books, records, and settlements for the funds within currently approved guidelines while also enabling mirror tokens on GS DAP with the aim of creating future opportunities globally.
Mathew McDermott, global head of Digital Assets at Goldman Sachs, adds: 鈥淯sing tokens representing the value of shares of money market funds on GS DAP would enable us to unlock their utility as a form of collateral and open up more seamless transferability in the future.鈥�
Through the partnership, BNY will employ blockchain technology developed by Goldman Sachs to maintain a record of customers鈥� ownership of select MMFs, in a step towards enhancing the utility and transferability of existing MMF shares.
According to BNY, the combined solution marks 鈥渢he first time鈥� in the US that fund managers have enabled subscription for shares of their MMFs via the firm鈥檚 LiquidityDirectSM and Digital Asset platforms.
The corresponding value will be represented through mirrored record tokenisation utilising GS DAP, a technology platform developed by Goldman Sachs Digital Assets, the firm adds.
Laide Majiyagbe, global head of liquidity, financing, and collateral at BNY, says: 鈥淢irrored tokenisation 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.
鈥淥ur collaboration with Goldman Sachs Digital Assets highlights our role as a trusted bridge between traditional finance and emerging technologies 鈥� empowering clients to navigate this transformation with confidence.鈥�
BlackRock, BNY Investments Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management will participate in the initial launch.
Investors can subscribe and redeem MMF shares through BNY鈥檚 LiquidityDirectSM platform, which offers connectivity to GS DAP via integration with BNY鈥檚 Digital Assets platform.
Mirror tokens of the MMF shares are created utilising GS DAP, which leverages solutions developed by Digital Asset.
BNY says it will continue to maintain the official books, records, and settlements for the funds within currently approved guidelines while also enabling mirror tokens on GS DAP with the aim of creating future opportunities globally.
Mathew McDermott, global head of Digital Assets at Goldman Sachs, adds: 鈥淯sing tokens representing the value of shares of money market funds on GS DAP would enable us to unlock their utility as a form of collateral and open up more seamless transferability in the future.鈥�
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