Key Takeaways
- • BNY and Goldman Sachs announced on July 23, 2025 a collaboration under which BNY will use blockchain technology developed by Goldman Sachs to maintain records of customers' ownership of select money market funds (MMFs), described as the first time in the U.S. that fund managers have enabled MMF share subscriptions via BNY's LiquidityDirect and Digital Asset platforms.
- • Mirror tokens of MMF shares are created on Goldman Sachs' GS DAP platform, with BNY continuing to maintain the official books, records, and settlements for the funds within currently approved guidelines.
- • BlackRock, BNY Investments Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management will participate in the initial launch.
- • Goldman Sachs' Mathew McDermott said tokenized MMF shares on GS DAP could unlock their utility as collateral and enable more seamless transferability over time.
Summary
The Bank of New York Mellon Corporation (BNY) and The Goldman Sachs Group, Inc. announced on July 23, 2025 a collaborative initiative under which BNY will employ blockchain technology developed by Goldman Sachs to maintain a record of customers' ownership of select money market funds. The companies said the arrangement is a significant step toward enhancing the utility and transferability of existing MMF shares, and that it marks the first time in the U.S. that fund managers have enabled subscriptions for their MMF shares through BNY's LiquidityDirect and Digital Asset platforms.
Under the structure, investors can subscribe to and redeem MMF shares through BNY's LiquidityDirect platform, which connects to Goldman Sachs Digital Assets' GS DAP platform via integration with BNY's Digital Assets platform. The value of the MMF shares is represented through mirror tokens created on GS DAP, an platform developed by Goldman Sachs Digital Assets that 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 enabling mirror tokens on GS DAP with the aim of creating future opportunities globally.
The initial launch includes BlackRock, BNY Investments Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management. Laide Majiyagbe, Global Head of Liquidity, Financing and Collateral at BNY, described mirrored tokenization of MMF shares as a first step in the firm's transition toward a more digital, real-time architecture. Mathew McDermott, Global Head of Digital Assets at Goldman Sachs, said that using tokens representing MMF shares on GS DAP would enable the funds to serve as collateral and allow more seamless transferability in the future.
BNY stated that as of June 30, 2025, it oversees $55.8 trillion in assets under custody and/or administration and $2.1 trillion in assets under management.
Under the structure, investors can subscribe to and redeem MMF shares through BNY's LiquidityDirect platform, which connects to Goldman Sachs Digital Assets' GS DAP platform via integration with BNY's Digital Assets platform. The value of the MMF shares is represented through mirror tokens created on GS DAP, an platform developed by Goldman Sachs Digital Assets that 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 enabling mirror tokens on GS DAP with the aim of creating future opportunities globally.
The initial launch includes BlackRock, BNY Investments Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management. Laide Majiyagbe, Global Head of Liquidity, Financing and Collateral at BNY, described mirrored tokenization of MMF shares as a first step in the firm's transition toward a more digital, real-time architecture. Mathew McDermott, Global Head of Digital Assets at Goldman Sachs, said that using tokens representing MMF shares on GS DAP would enable the funds to serve as collateral and allow more seamless transferability in the future.
BNY stated that as of June 30, 2025, it oversees $55.8 trillion in assets under custody and/or administration and $2.1 trillion in assets under management.
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