Goldman Sachs and BNY Mellon have partnered to launch digital tokens that mirror shares of money market funds, leveraging blockchain technology to enable 24/7 trading. This initiative allows institutional investors to buy and sell money market fund shares on BNY's LiquidityDirect platform, with a digital record created on Goldman's blockchain system.
This development is poised to make it easier and faster for institutional investors to utilize these assets, potentially reducing trade settlement times and enhancing liquidity. The move signifies a growing trend among traditional financial firms to integrate crypto technology into conventional asset classes.
For Federated Hermes, a global leader in money market management, this represents a significant competitive innovation. As the industry evolves with new technological solutions, Federated Hermes will need to adapt its strategies to maintain its market position and address the implications of tokenized assets in its core business.
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