Goldman Sachs and The Bank of New York Mellon Corporation have partnered to enable institutional investors to purchase tokenized money market funds, with ownership recorded on Goldman's blockchain platform. Clients of BNY Mellon, the world's largest custody bank, will be able to invest in these funds.
Fund titans including BlackRock, Fidelity Investments, and Federated Hermes, along with the asset management arms of Goldman Sachs and BNY Mellon, have already signed up for the project. This initiative aims to transform the $7.1 trillion money market industry by allowing for faster settlement, round-the-clock trading, and automation.
Laide Majiyagbe, BNY Mellon's global head of liquidity, financing, and collateral, stated that tokenizing is important for seamless and efficient transactions without the frictions of traditional markets. This collaboration is seen as the next leap forward for digital assets, following the recent signing of a law marking the arrival of U.S.-regulated stablecoins, and could bolster the use of tokenized funds as collateral.
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