Goldman Sachs and BNY Mellon, two big names of Wall Street have joined forces on a new solution that will power tokenized money market funds. BNY Mellon confirmed the initiative on Wednesday via an official blog post.
According to the statement, the innovation will open up access to tokenized money market funds for institutional investors. More so, the tool will offer real-time settlement, 24/7 market access while increasing the efficiency of capital markets.
The release disclosed that Goldman Sachs’ private blockchain network will power the project. By that, it will enable customers of BNY Mellon, the world’s largest custodian bank to invest in money market funds and their ownership will be recorded on the aforementioned blockchain.
As part of the project, industry bigwigs like BlackRock, Fidelity Investments, and Federated Hermes, including asset management arms of Goldman and BNY will also participate. In addition, BNY Mellon said the new solution is a landmark achievement in improving the “utility and transferability of money market funds.”
BNY Mellon revealed that the innovation is the first time US fund managers will allow subscription for shares of their money market funds through a digital assets platform.
Executive insight
Meanwhile, the Global Head of Liquidity, Financing, and Collateral of BNY, Laide Majiyagbe provided deeper insight into the development. The executive described how the institution is committed to introducing scalable and secure solutions that are capable of shaping the future of finance.
Majiyagbe opined that the financial system is moving towards a digital and real-time architecture. She added that the partnership with Goldman Sachs underlines the role of BNY Mellon as a trusted bridge between traditional finance and emerging technologies.
Similarly, the Global Head of Digital Assets of Goldman Sachs, Matthew McDermott also reflected on the partnership. The executive emphasized how the collaboration will open up opportunities that will make money market funds more transferable in the future.
It is worth mentioning that the collaboration of BNY Mellon and Goldman Sachs is a notable development in the increasing presence of institutional investors in the blockchain space. Lately, a growing number of firms in the traditional finance space are gradually embracing digital assets innovation.
In May 2025, VanECK, a popular investment management firm joined forces with Securitize to launch its first tokenized funds. During the month, a German tokenization protocol launched a US Treasury bill on Algorand.
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