According to BlockBeats, on July 23, CNBC reported that Goldman Sachs and BNY Mellon are set to announce that they have enabled institutional investors to purchase tokenized money market funds. According to executives from both companies, as the world's largest custodian bank, BNY Mellon’s clients will be able to invest in money market funds with ownership recorded through Goldman Sachs' blockchain platform.
The project has attracted a group of fund giants, including BlackRock, Fidelity Investments, Federated Hermes, as well as the asset management divisions of Goldman Sachs and BNY Mellon.
Wall Street giants believe that tokenizing the $7.1 trillion money market fund is the next major leap in the digital asset space, following President Trump's signing of new legislation (the GENIUS Act) that marks the arrival of regulated stablecoins in the U.S. last week. The legislation is expected to drive the adoption of stablecoins (typically pegged to the U.S. dollar) in practical use. JPMorgan Chase, Citigroup, and Bank of America have all stated that they are exploring the use of stablecoins in payment scenarios.
Unlike stablecoins, tokenized money market funds can provide returns to holders, making them a more attractive 'cash parking space' for hedge funds, pension institutions, and corporations.
