Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Goldman Sachs and BNY Launch Tokenized MMF for Institutions
Tokenization | July 24, 2025
Image: Freepik
Institutional Clients Gain Real Time Access to Fund Shares on Private Blockchain
On July 23, 2025, BNY Mellon and Goldman Sachs launched a tokenized money market fund solution that allows select institutional clients to subscribe, redeem, and safely hold tokenized fund shares on a private blockchain. This is a live system that connects BNY Mellon’s LiquidityDirect platform with Goldman Sachs’ GS DAP® digital asset platform, giving clients new ways to manage cash faster and more efficiently.
The funds themselves aren't changing, but there's a new digital layer that mirrors fund shares as blockchain-based tokens. These tokens move in real time, helping institutions make faster decisions that can unlock liquidity more quickly.
A Digital Layer That Speeds Up the System
When a client purchases a digital share class through LiquidityDirect, BNY Mellon updates the official fund records and creates/issues a mirrored token on GS DAP®. These tokens are not tradable on public markets but can be used internally by institutions to streamline operations such as collateral management and treasury settlement. BNY Mellon acts as the recordkeeper, custodian, and token administrator, minting and burning tokens to match the real holdings.
Goldman Sachs runs the blockchain infrastructure using GS DAP®, which is built on the Canton Network and powered by Daml smart contracts designed for financial markets.
See: Schwab to Bring Crypto Trading to Its Brokerage Platform
At launch, the solution includes tokenized share classes from BlackRock, Fidelity, Federated Hermes, Goldman Sachs Asset Management, and BNY Mellon’s Dreyfus group.
Unlocking Liquidity Without Changing the Product
Money market funds are a $7 trillion market in the U.S., widely used by institutions for short term cash needs. But current systems can take one or two days to process subscriptions and redemptions, delaying how quickly institutions can move capital or meet margin requirements.
This tokenized solution reduces the settlement window to the same day. It allows institutions to unlock value from their fund shares more quickly and use them as collateral in time sensitive operations. The system is live, regulated, and designed to integrate directly with existing institutional infrastructure.
Laide Majiyagbe, Global Head of Liquidity, Financing & Collateral at BNY Mellon:
“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.”
See: AuCan Launches $2.5B Tokenised Gold RWA Platform
Mathew McDermott, Global Head of Digital Assets at Goldman Sachs said:
“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.”
First to Market with a Real System That Works
Other institutions are experimenting with similar models. JPMorgan’s Onyx system (renamed Kinexsys) has tokenized repo agreements, and BlackRock’s BUIDL fund has issued over $6.75 billion in tokenized Treasuries on public blockchain.
But BNY Mellon and Goldman Sach's is the first solution connecting real fund operations to tokenized workflows on a production platform used by institutional clients. What sets it apart is that they aren't replacing traditional systems, but rather they are adding speed and programmability within a framework that clients and regulators already know and use.
Outlook for Institutional Liquidity
By creating mirrored tokens for money market funds, two of the largest global financial institutions are proving that blockchain can deliver real operational value without disrupting regulatory oversight. This is significant validation considering not too long ago, Goldman Sachs was at a point where they were reconsidering whether or not Bitcoin was a legitimate asset.
See: SEC Exploring Ethereum Standard for Tokenized Securities
This model gives institutions faster access to capital, greater flexibility, and new ways to integrate fund holdings into real time financial operations. With policy clarity improving, tokenized fund infrastructure may soon become a standard feature in global markets.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
 |  |  |
|---|---|---|
 |  |  |
Leave a Reply