• BNY and Goldman Sachs partner to tokenize money market fund shares on Goldman’s GS DAP® platform.

  • Aims to enhance utility and transferability, reducing settlement times and improving collateral efficiency.

  • Supported by major institutions like BlackRock and Fidelity, signaling mainstream adoption of digital assets.

On July 23, 2025, The Bank of New York Mellon Corporation (BNY) and Goldman Sachs Group, Inc. announced a groundbreaking partnership to tokenize shares of money market funds (MMFs) on Goldman’s blockchain platform, GS DAP®. This initiative targets the $7.1 trillion money market fund industry, aiming to bring it onchain with promises of faster settlements and improved collateral management. The move has sparked discussions on platforms like X, reflecting both excitement and cautious optimism within the crypto community.

Under this agreement, BNY will offer tokenized MMF shares through its LiquidityDirectSM platform, seamlessly integrated with Goldman Sachs’ GS DAP®. Investors can subscribe to and redeem these shares using digital tokens that mirror traditional MMF shares, with BNY managing official records and settlements while Goldman provides the blockchain infrastructure for ownership tracking and transactions. This marks a first-of-its-kind U.S. deployment of tokenized money market funds, positioning both institutions at the forefront of financial innovation.

The initiative has garnered support from major financial players, including BlackRock, BNY Investments Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management. This broad participation highlights the industry’s confidence in tokenization’s potential to reshape traditional finance. The involvement of such heavyweights suggests a strong foundation for adoption, though scalability remains a key question.

The tokenized solution offers 24/7 settlement capabilities, eliminating delays tied to traditional market hours, and enhances the use of MMF shares as collateral. By leveraging blockchain technology, the partnership seeks to reduce transactional friction and boost liquidity for institutional investors. These improvements could make MMFs more competitive in a digital-first financial landscape, though integration challenges may arise.

Money market funds, with over $7 trillion in assets under management, are vital for institutional cash management and stability during market volatility. Tokenizing these funds could unlock new use cases, such as integration with decentralized finance (DeFi) protocols, expanding their utility beyond traditional finance. BNY, overseeing $53 trillion in assets, and Goldman Sachs are well-positioned to drive this transformation, given their scale and expertise.

Laide Majiyagbe, BNY’s global head of liquidity, financing, and collateral, stated, “The step of tokenizing is important, because today that will enable seamless and efficient transactions, without the frictions that happen in traditional markets.” This underscores the potential for blockchain to streamline financial operations, though some in the crypto community express concerns about centralized control over tokenized assets.

This partnership aligns with a growing trend of Wall Street embracing digital assets. The tokenized U.S. Treasuries market, for instance, has surged to over $7 billion in 2025, tripling from the previous year. Such developments signal a shift toward integrating traditional finance with blockchain, potentially reshaping global markets. The announcement has also gained traction on social media, with @TheBlock__ noting the deal’s significance.

BNY, Goldman Sachs ink tokenized money market fund deal to bring $7.1 trillion industry onchain https://t.co/3QH6xZYLJ1

— The Block (@TheBlock__) July 23, 2025

While the initiative promises efficiency, risks remain. Regulatory uncertainties could complicate adoption, as tokenization operates in a gray area of financial oversight. Additionally, the reliance on Goldman’s private blockchain raises questions about decentralization, a point of contention among crypto purists on X. These challenges highlight the need for careful implementation to ensure long-term success.

The partnership between BNY and Goldman Sachs marks a pivotal moment in blending traditional finance with blockchain technology. By tokenizing money market funds, they aim to enhance efficiency and open new avenues for institutional investors. As the financial sector continues to explore digital assets, this initiative could set a precedent for future innovations, with the crypto community and traditional investors alike watching closely for its impact.

Disclaimer: This article is for informational purposes only and does not constitute legal, tax, investment, or financial advice. Readers should conduct their own research before making investment decisions. We use AI to help us research and enhance the text or visual aids, which are then edited by our team.

The post BNY and Goldman Sachs Want to Bring $7 Trillion Onchain appeared first on Cryptopress.