American financial giants Goldman Sachs and BNY Mellon have announced a joint initiative to open access to tokenized funds for institutional investors. This innovation reflects a broader industry push to modernize the investment landscape and bring greater transparency and efficiency to fund management.
According to a press release, BNY Mellon will use blockchain technology developed by Goldman Sachs to keep track of clients’ rights to specific investment products.
The collaboration is set to involve Dreyfus, a BNY Mellon company, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management in the initial launch. These major players aim to establish a new standard for digitized fund transactions.
“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. Mirrored tokenization of MMF shares is a first step in this transition, and we are proud to be at the forefront of this first-of-its-kind initiative,” stated Laide Majiyagbe, BNY Mellon’s Head of Liquidity, Funding, and Collateral.
Investors will be able to subscribe to and redeem MMF shares through the blockchain-based BNY Mellon LiquidityDirect platform. Mirrored security tokens are created on Goldman Sachs’ Digital Asset Platform (GS DAP), offering increased transparency and reducing settlement times by leveraging distributed ledger technology.
A wave of crypto-related announcements from major companies has followed US President Donald Trump signing the GENIUS Act. This Act establishes clear rules for stablecoins and represents the first significant regulation of the crypto industry in the United States.
