Key Takeaways
- • BNY Mellon and Goldman Sachs launched a tokenized money market fund solution on July 23, 2025, enabling institutional clients to subscribe and redeem MMF shares via blockchain technology for the first time in the U.S. market.
- • The solution leverages Goldman Sachs' proprietary GS DAP® blockchain platform integrated with BNY's LiquidityDirect platform and Digital Assets infrastructure, creating mirror tokens representing MMF share ownership.
- • Five major asset managers participate in the initial launch: BlackRock, BNY Investments Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management.
- • BNY has concurrently expanded tokenized deposit capabilities for institutional clients, enabling real-time on-chain settlement and transfer of bank deposits using blockchain rails, marking a shift toward tokenizing existing financial assets rather than creating new instruments.
- • The initiative positions BNY as the custodian advancing blockchain adoption among systemically important U.S. banks, with integrated solutions supporting both traditional and digital asset custody on a single platform.
Summary
BNY Mellon and Goldman Sachs announced a collaborative tokenization initiative on July 23, 2025, designed to modernize institutional access to money market funds through blockchain technology. The solution represents the first U.S. deployment allowing fund managers to enable subscription for MMF shares via BNY's LiquidityDirect platform, with ownership records maintained through mirrored tokenization utilizing Goldman Sachs' proprietary GS DAP® blockchain technology. This marks a significant milestone in bringing existing financial assets—rather than experimental tokens—onto blockchain infrastructure for institutional capital markets.
The technical architecture integrates Goldman Sachs' award-winning GS DAP® platform, which leverages solutions developed by Digital Asset, with BNY's market-leading LiquidityDirect connectivity and Digital Assets platform. Investors can now subscribe and redeem MMF shares through a unified interface, with corresponding mirror tokens created on the GS DAP® blockchain. Five leading asset managers are participating in the initial launch: BlackRock, BNY Investments Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management.
Concurrent with the MMF tokenization launch, BNY has extended its tokenized deposit capabilities for institutional clients, enabling blockchain-based movement and settlement of bank deposits. These capabilities represent BNY's broader strategic commitment to transitioning the financial system toward real-time, on-chain architecture. According to Laide Majiyagbe, Global Head of Liquidity, Financing and Collateral at BNY, the bank is focused on "enabling scalable and secure solutions that shape the future of finance" as institutions increasingly demand digital settlement capabilities. BNY's position as the first systemically important U.S. bank to offer integrated custody for both traditional and digital assets across a single platform underscores institutional appetite for seamless tokenization solutions in regulated environments.
The technical architecture integrates Goldman Sachs' award-winning GS DAP® platform, which leverages solutions developed by Digital Asset, with BNY's market-leading LiquidityDirect connectivity and Digital Assets platform. Investors can now subscribe and redeem MMF shares through a unified interface, with corresponding mirror tokens created on the GS DAP® blockchain. Five leading asset managers are participating in the initial launch: BlackRock, BNY Investments Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management.
Concurrent with the MMF tokenization launch, BNY has extended its tokenized deposit capabilities for institutional clients, enabling blockchain-based movement and settlement of bank deposits. These capabilities represent BNY's broader strategic commitment to transitioning the financial system toward real-time, on-chain architecture. According to Laide Majiyagbe, Global Head of Liquidity, Financing and Collateral at BNY, the bank is focused on "enabling scalable and secure solutions that shape the future of finance" as institutions increasingly demand digital settlement capabilities. BNY's position as the first systemically important U.S. bank to offer integrated custody for both traditional and digital assets across a single platform underscores institutional appetite for seamless tokenization solutions in regulated environments.
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