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U.S. financial powerhouses have made a notable advancement towards the digitization of conventional financial assets by introducing infrastructure for the tokenization of money market fund (MMF) shares.
The Bank of New York Mellon Corporation (BNY Mellon) and Goldman Sachs Group, Inc., two of the largest investment banks in the United States, have revealed the launch of a solution designed to broaden and streamline access for American institutional investors to the market for tokenized assets.
As part of this initiative, BNY Mellon will oversee the ownership registry of clients’ money market fund shares on the blockchain developed by Goldman Sachs. The system is designed to facilitate the subscription and redemption of MMF shares via the LiquidityDirect platform, which is integrated with BNY Mellon’s digital asset framework. Concurrently, mirror tokens of MMF shares will be generated on GS DAP®, the platform for Goldman Sachs Digital Assets.
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This development will provide investors with enhanced flexibility in trading and accounting for their assets without altering the legal status or regulatory framework of the funds.
In the initial stage, prominent asset managers such as BlackRock, Dreyfus (BNY Investments), Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management will be involved.
Laide Majiyagbe, Global Head of Liquidity, Financing, and Collateral at BNY Mellon, remarked that the mirror tokenization of MMF shares represents a preliminary step towards a more digital and agile financial architecture. She also indicated that BNY Mellon will continue to officially manage accounting, documentation, and settlements for the funds while facilitating token issuance on GS DAP® to further expand the solution on a global scale. Mathew McDermott, Global Head of Digital Assets at Goldman Sachs, highlighted that the tokenization of MMF shares will enable their use as collateral and enhance liquidity by simplifying transfers between parties.
This initiative illustrates the increasing interest from major financial institutions in the tokenization of traditional financial instruments. Previously, JPMorgan began experimenting with the tokenization of bank deposits on the Base blockchain, Citi is developing infrastructure for the tokenization of private market assets, and the Bank for International Settlements (BIS), World Bank, and Swiss National Bank (SNB) have tested the tokenization of promissory notes.
Сообщение BNY and Goldman Sachs Launch Tokenization Platform for U.S. Money Market Funds появились сначала на CoinsPaid Media.
