- Goldman and BNY offer token money market funds on blockchain to top global fund managers.
- The move adds yield to tokenized assets and helps banks gain control over digital finance.
- BNY stock rose from $90 to $98.66 in just one month, showcasing growth in investor trust.
Goldman Sachs and Bank of New York Mellon have launched tokenized money market funds for institutional investors. CNBC confirmed today that ownership will be recorded on Goldman’s GS DAP blockchain platform. BNY Mellon clients can now access these digital assets seamlessly through the world’s largest custody bank.
Goldman and BNY executives disclosed that major fund managers, including BlackRock, Fidelity, and Federated Hermes, are already involved. The platform is built to streamline fund ownership while enhancing transparency and reducing friction in traditional transactions.
This follows U.S. President Donald Trump’s recent approval of the GENIUS Act, as the law introduces a regulated framework for stablecoins. This, in turn, propels institutions to explore blockchain applications for mainstream assets.
Institutional Investors Quietly Embrace On-Chain Infrastructure
BNY Mellon’s global head of liquidity, Laide Majiyagbe, confirmed that their clients can invest in tokenized share classes. She stated, “The step of tokenizing is important… it enables seamless and efficient transactions.” These developments come at a moment when traditional finance firms are accelerating their on-chain capabilities.
Goldman Sachs’ GS DAP platform is at the center, engineered to tokenize and service traditional securities with real-time blockchain functionality. This is not a limited pilot but rather a foundational deployment. The project connects BNY’s vast custody network to Goldman’s digital asset rails, marking a serious infrastructure build.
This cooperation allows BNY clients direct access to fund shares through a shared digital ledger. Such functionality opens doors to round-the-clock fund access, near-instant settlements, and streamlined collateralization across markets. With blockchain-based ownership records, manual reconciliation steps are eliminated.
Tokenized Funds Offer Yield and Institutional Stability
Unlike stablecoins that maintain price parity, tokenized money market funds offer yield. This is highly attractive to hedge funds, pensions, and corporations seeking efficient and liquid parking for cash.
The GENIUS Act has laid a legal foundation which helped traditional banks like JPMorgan Chase and Citigroup explore stablecoin integration. Goldman and BNY have now expanded this vision by pushing for yield-generating, regulated, on-chain assets. As they continue to offer tokenized yield instruments on secure platforms, traditional banks strengthen their grip on digital finance.
While the DeFi space introduced tokenization, Wall Street is refining and scaling it under full compliance and institutional trust. Legacy firms already possess client bases, regulatory channels, and tech funding to operationalize blockchain without external dependencies.
Related: Goldman Backs Crypto Lending and Token Plans at TOKEN2049
A New Era of Institutional Finance By Tokenized Money Market Funds
The collaboration between Goldman Sachs and BNY Mellon marks more than a digital upgrade. The team-up has begun a shift toward a transparent and highly liquid financial system, utilizing blockchain as its core infrastructure. This move integrates traditional investments with the fast-growing realm of digital assets, creating new access for institutional clients.
Blockchain’s adoption here shows that it is more than just a tool for cryptocurrencies. Furthermore, it’s now forming the base layer of future financial markets and asset management. As more global institutions follow this path, how assets are traded, owned, and settled will see new advancements.
On the other hand, Bank of New York Mellon Corp (NYSE: BK) shares have shown a steady month-long rally, climbing from $90 in late June to $98.66 today, according to CNBC data.
The stock peaked near its 52-week high of $99.83 before pulling back slightly by 0.24%, or $0.24, in early trading. Volume kept its value at 926,145 shares. This upward movement shows high investor confidence, which is likely influenced by the bank’s recent collaboration with Goldman Sachs on tokenized money market funds. Over the past month, the stock has added over 8%, outperforming many of its financial sector peers during this period.
