BNY, Goldman Sachs Launch Tokenized Money Market Funds

The Bank of New York Mellon Corporation, a global financial services company, and the Goldman Sachs Group, Inc. announced a collaborative initiative by which BNY will employ blockchain technology developed by Goldman Sachs to maintain a record of customers’ ownership of select Money Market Funds (MMFs), in a significant step towards enhancing the utility and transferability of existing MMF shares. This combined solution marks the first time in the U.S. that fund managers have enabled subscription for shares of their MMFs via BNY’s LiquidityDirectSM and Digital Asset platforms, the corresponding value of which will be represented through mirrored record tokenization utilizing GS DAP®. Investors can subscribe and redeem MMF shares through BNY’s LiquidityDirectSM platform, which offers connectivity to GS DAP® via integration with BNY’s Digital Assets platform. Mirror tokens of the MMF shares are created utilizing GS DAP®, a technology platform developed by Goldman Sachs Digital Assets, which leverages solutions developed by Digital Asset. BNY will continue to maintain the official books, records, and settlements for the funds within currently approved guidelines while also enabling mirror tokens on GS DAP® with the aim of creating future opportunities globally.