BNY Mellon and Goldman Sachs launched a joint initiative to improve the transferability of Money Market Fund (MMF) shares. BNY Mellon will use Goldman Sachs’ GS DAP blockchain to create a mirrored, tokenized record of MMF ownership.
This first-of-its-kind solution in the U.S. enables fund managers to offer MMF share subscriptions through BNY Mellon’s LiquidityDirect and Digital Asset platforms, with value represented by mirror tokens on GS DAP.
Major asset managers like BlackRock, Fidelity, and Goldman Sachs Asset Management are participating.
Investors can subscribe and redeem MMF shares through BNY Mellon’s LiquidityDirect, connected to GS DAP via BNY Mellon’s Digital Assets platform. BNY Mellon will still maintain official records, but mirror tokens on GS DAP aim to improve global efficiency and transferability.
KEY QUOTES:
“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. Our collaboration with Goldman Sachs Digital Assets highlights our role as a trusted bridge between traditional finance and emerging technologies – empowering clients to navigate this transformation with confidence.”
Laide Majiyagbe, Global Head of Liquidity, Financing and Collateral at BNY
“Using tokens representing the value of shares of Money Market Funds on GS DAP would enable us to unlock their utility as a form of collateral and open up more seamless transferability in the future. We are excited about this strategic collaboration with BNY in our journey towards the longer-term vision for GS DAP® and as we continue to lead and innovate in the digital assets space.”
Mathew McDermott, Global Head of Digital Assets at Goldman Sachs
