Goldman Sachs and Bank of New York Mellon (BNY) have launched a joint solution that allows BNY’s institutional clients to invest in tokenized money market funds using Goldman’s private blockchain platform GS DAP. BNY will continue to keep the official books and records for select money market funds, while using Goldman’s distributed ledger technology to maintain a mirrored record of customer ownership in the form of digital tokens. Investors can subscribe to and redeem these fund shares through BNY’s LiquidityDirect platform, which now connects to GS DAP via BNY’s digital asset infrastructure. The initiative is being positioned as a significant step in the tokenization of traditional financial assets, aiming to improve the utility, transferability, and potential collateral use of money market fund shares. The tokenized shares are designed as “mirrored record tokenization,” meaning the blockchain tokens represent existing MMF positions rather than creating a separate on-chain fund, allowing the product to remain within existing regulatory and operational frameworks while exploring 24/7 market access and faster settlement. Major asset managers including BlackRock, BNY Mellon’s Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management are participating at launch, signaling growing interest among large financial institutions in blockchain-based infrastructure for cash management and liquidity products.

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