- Goldman Sachs and BNY Mellon launched a blockchain platform for tokenized money market funds, enabling 24/7 institutional access.
- These tokenized fund shares generate passive yield from underlying assets like U.S. Treasuries, unlike regular stablecoins.
- Major firms including BlackRock and Fidelity joined the initiative, signaling rising demand for blockchain-based traditional finance.
Wall Street giants Goldman Sachs and BNY Mellon have introduced a new blockchain-based platform for institutional investors to access tokenized money market funds. The system, announced on July 23, allows clients to subscribe, trade, and redeem fund shares as digital tokens that settle in real time on Goldman’s private blockchain, replacing traditional end-of-day processes.
How the new blockchain platform works
The platform connects with BNY Mellon’s LiquidityDirect portal, which is widely used for managing short-term cash. Major asset managers like BlackRock, Fidelity, Federated Hermes, and Goldman Sachs Asset Management have already joined the initiative. Through this setup, investors can now interact with fund shares at any time, even outside regular trading hours.
Unlike regular stablecoins, which don’t yield income unless used in lending platforms, these tokenized fund shares directly earn returns. The income comes from the money market fund’s underlying assets, such as short-term U.S. Treasury instruments.
That gives these tokens a stable value while also generating passive yield. This launch also aligns with the GENIUS Act, which recently introduced regulatory clarity for digital assets in the U.S.
$7.1 Trillion Sector Sees Digital Disruption
The U.S. money market fund industry holds more than $7.1 trillion. By moving fund shares to a blockchain, Goldman and BNY Mellon aim to modernize how institutional investors manage liquidity and collateral. With tokenized shares, firms can transfer ownership faster and with greater transparency.
Greg Grimaldi, co-head of Goldman’s fund solutions, said the blockchain allows “real-time, programmable transfer” of fund shares. Stephanie Pierce of BNY Mellon highlighted how the move reduces delays in cash and collateral movement while enabling more flexible fund operations.
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This rollout marks a broader shift in financial infrastructure. Wall Street is now using blockchain not only for crypto, but also for traditional financial products. Goldman Sachs and BNY Mellon have not yet given a date for wider access, but the involvement of major asset managers suggests growing institutional demand for tokenized finance.
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