Goldman Sachs and BNY Mellon have jointly announced the launch of tokenised shares of money market funds (MMFs), bringing blockchain technology further into mainstream finance. The initiative enables investors to buy and sell MMF shares via BNY’s LiquidityDirect platform, while maintaining a blockchain-based record of ownership using Goldman’s GS DAP® (Digital Asset Platform).

The collaboration signifies a growing trend among traditional financial giants embracing tokenisation to streamline operations, increase transparency, and offer new utilities for existing financial instruments. Participating firms in this pilot programme include some of the industry’s biggest names: BlackRock, BNY Investments, Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management.

How the Tokenisation Works

Under the new system, investors purchasing money market fund shares on BNY’s LiquidityDirect platform will receive mirrored digital tokens on Goldman’s blockchain infrastructure. These tokens reflect real-world ownership of MMF shares and will be recorded on GS DAP®, Goldman Sachs’ proprietary digital asset platform.

This mirrored tokenisation doesn’t replace the actual financial assets, it enhances them. It allows for real-time tracking, potentially faster settlement, and paves the way for greater use of MMF shares as collateral in other financial operations.

Strategic Vision Behind the Launch

Both Goldman Sachs and BNY Mellon have described the project as part of a broader mission to modernise finance using blockchain infrastructure.

“As the financial system transitions toward a more digital, real-time architecture, BNY is committed to enabling scalable and secure solutions that shape the future of finance,” said Laide Majiyagbe, Global Head of Liquidity, Financing, and Collateral at BNY. She called the tokenised MMF shares a “first-of-its-kind initiative,” highlighting BNY’s role as a bridge between traditional finance and emerging technologies.

Mathew McDermott, Global Head of Digital Assets at Goldman Sachs, added that the tokens could unlock a new level of utility by making MMF shares easier to transfer and use as collateral. “This collaboration with BNY supports our longer-term vision for GS DAP® and reinforces our leadership in digital assets,” he said.

Tokenisation Momentum Builds as Crypto Surges

This development comes as tokenisation gains wider interest across the financial sector. Asset managers, banks, and infrastructure providers are increasingly looking at blockchain to digitise real-world assets and improve operational efficiency. The success of this pilot may influence broader adoption across money markets and beyond.

The timing is notable, as overall sentiment in the crypto sector is highly bullish. Bitcoin has surged to near-all-time highs, trading around $118,000, while Ethereum has jumped over 50% in the past month, now hovering around $3,600. The recent passing of the Genius Act has further energised market participants, sparking renewed interest in crypto innovation and infrastructure.

The Future of Tokenised Finance

Goldman Sachs and BNY’s venture into tokenised MMF shares is not just a tech upgrade, it could reshape how liquidity and collateral are managed in global finance. As digital asset infrastructure matures, and regulatory clarity improves, tokenised versions of traditional assets are poised to play a major role in the financial systems of tomorrow.