$6 Trillion Money Markets to Run 24/7 on Goldman Blockchain

• Blockchain platform to revolutionize money market fund trading.
• Tokenized shares promising instant settlement and streamlined collateral.

Goldman Sachs and BNY Mellon unveiled a new blockchain-powered platform to tokenize the $6 trillion money market funds sector. The initiative allows institutional investors to purchase tokenized shares, with Goldman Sachs’ GS DAP® platform securely recording ownership.

As the world’s largest custodian bank, BNY Mellon uses Goldman Sachs’ blockchain technology to digitize shares of money market funds, a process that ensures the digital shares reflect the value of traditional shares. By synchronizing digital tokens with traditional records, the platform offers several benefits, including around-the-clock trading, instant settlements, and operational efficiencies.

Major industry players are actively participating in the launch, including BlackRock, Federated Hermes, and Goldman Sachs Asset Management. BNY Mellon will process tokenized share subscriptions using its LiquidityDirect℠ and Digital Asset platforms. Meanwhile, the GS DAP® platform highlights how tokenization can bridge traditional finance and blockchain technology.

Tokenization transforms real-world assets into digital representations on a blockchain, facilitating efficient trading, transparency, and automation. Through smart contracts, the process reduces the reliance on intermediaries, which cuts trading costs and boosts liquidity. Tokenized assets also revolutionize collateral management, as investors can now transfer tokens to meet collateral requirements instead of selling traditional funds.

This move underscores the accelerating adoption of blockchain technology outside the cryptocurrency sphere, as traditional financial institutions leverage its potential to update legacy systems. In addition, regulatory support, such as the Clarity for Payment Stablecoins Act's stablecoin framework, helps spur this adoption. Since money market funds offer dependable yields, the new platform is an attractive blockchain-based solution, providing institutional investors with both efficiency and accessibility.