Key Takeaways
- • BNY Mellon and Goldman Sachs launched a tokenized money market fund solution enabling institutional investors to subscribe to MMF shares via blockchain-based record-keeping on Goldman's GS DAP® platform, marking the first U.S. offering of its kind for fund managers.
- • The initiative integrates BNY's market-leading LiquidityDirect platform with Goldman Sachs' private permissioned blockchain infrastructure, creating mirrored token representations of money market fund shares for enhanced transferability and utility in digital capital markets.
- • Five major asset managers are participating in the initial launch: BlackRock, BNY Investments Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management, signaling institutional-grade adoption of tokenized fund infrastructure.
- • Goldman Sachs Digital Assets intends to spin out its GS DAP technology platform as a separate entity and expand tokenization offerings, with plans to launch three additional tokenization projects by year-end, positioning the firm as a central infrastructure provider in digital asset markets.
- • The solution addresses institutional investor demand for real-time, efficient transfer of fund ownership records through blockchain technology, reducing settlement friction and enhancing the liquidity characteristics of traditionally illiquid money market fund shares.
Summary
BNY Mellon and Goldman Sachs announced a collaborative initiative in July 2025 to enable tokenization of money market fund shares on Goldman Sachs' blockchain platform. Under this arrangement, BNY will utilize blockchain technology developed by Goldman Sachs to maintain digital records of customer ownership of select money market funds. Investors can subscribe and redeem MMF shares through BNY's LiquidityDirect platform, with corresponding ownership represented through mirrored token records created on GS DAP® (Goldman Sachs Digital Assets Platform), a private permissioned blockchain built using infrastructure developed by Digital Asset.
The offering marks the first time in the United States that fund managers have enabled direct subscription to MMF shares through BNY's integrated LiquidityDirect and Digital Assets platforms with corresponding blockchain tokenization. Five major asset managers are participating in the initial launch: BlackRock, BNY Investments Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management. This institutional participation underscores market maturity and confidence in the infrastructure. The solution is designed specifically for sophisticated institutional investors navigating digital capital markets and reflects broader industry movement toward real-time, digitally native settlement infrastructure.
GS DAP functions as an award-winning blockchain platform developed by Goldman Sachs Digital Assets that leverages Digital Asset's Canton Network, an infrastructure solution featuring built-in privacy controls required by financial institutions. The integration between GS DAP and BNY's platforms enables seamless connectivity while maintaining institutional-grade security and compliance standards. Laide Majiyagbe, Global Head of Liquidity, Financing and Collateral at BNY, stated that the solution represents BNY's commitment to "enabling scalable and secure solutions that shape the future of finance" as financial systems transition toward a more digital, real-time architecture.
Goldman Sachs has signaled broader ambitions in tokenization infrastructure. The firm intends to explore strategic opportunities to spin out GS DAP as a wholly separate entity from its Digital Assets business, effectively positioning the technology platform as a standalone infrastructure provider. Additionally, Goldman Sachs plans to launch three additional tokenization projects by year-end, expanding its crypto and digital asset offerings across multiple product categories. This spin-out strategy suggests management views tokenization infrastructure as a strategically distinct business opportunity with standalone market value, similar to venture-backed fintech platforms serving institutional clients.
The offering marks the first time in the United States that fund managers have enabled direct subscription to MMF shares through BNY's integrated LiquidityDirect and Digital Assets platforms with corresponding blockchain tokenization. Five major asset managers are participating in the initial launch: BlackRock, BNY Investments Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management. This institutional participation underscores market maturity and confidence in the infrastructure. The solution is designed specifically for sophisticated institutional investors navigating digital capital markets and reflects broader industry movement toward real-time, digitally native settlement infrastructure.
GS DAP functions as an award-winning blockchain platform developed by Goldman Sachs Digital Assets that leverages Digital Asset's Canton Network, an infrastructure solution featuring built-in privacy controls required by financial institutions. The integration between GS DAP and BNY's platforms enables seamless connectivity while maintaining institutional-grade security and compliance standards. Laide Majiyagbe, Global Head of Liquidity, Financing and Collateral at BNY, stated that the solution represents BNY's commitment to "enabling scalable and secure solutions that shape the future of finance" as financial systems transition toward a more digital, real-time architecture.
Goldman Sachs has signaled broader ambitions in tokenization infrastructure. The firm intends to explore strategic opportunities to spin out GS DAP as a wholly separate entity from its Digital Assets business, effectively positioning the technology platform as a standalone infrastructure provider. Additionally, Goldman Sachs plans to launch three additional tokenization projects by year-end, expanding its crypto and digital asset offerings across multiple product categories. This spin-out strategy suggests management views tokenization infrastructure as a strategically distinct business opportunity with standalone market value, similar to venture-backed fintech platforms serving institutional clients.
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