Goldman Sachs and BNY Mellon Tokenize $7.1 Trillion Money Market

Goldman Sachs and Bank of New York Mellon (BNY Mellon) have announced a partnership to integrate blockchain technology and cryptocurrencies into the $7.1 trillion money market fund industry. The project aims to tokenize money market funds, enabling institutional investors to benefit from real-time settlements and blockchain-based ownership tracking.

The initiative is supported by major asset managers such as BlackRock, Fidelity Investments, and Federated Hermes. The platform will utilize Goldman Sachs’ private blockchain to record fund ownership. Unlike stablecoins, tokenized money market funds generate yield, making them attractive to hedge funds, pensions, and corporate treasuries.

The project follows the recent signing of the GENIUS Act by President Donald Trump, which promotes federally regulated stablecoins and accelerates digital asset adoption. The partnership marks a significant step toward the integration of digital assets into traditional finance.

According to McKinsey estimates, tokenized assets could reach $2 trillion by 2030. The rollout of this initiative will be closely watched by the industry due to regulatory challenges and the need for scalable blockchain infrastructure.