Goldman Sachs and BNY Launch Tokenized Money Market Funds for Institutions

Goldman Sachs and BNY are set to unveil a groundbreaking blockchain initiative that will allow institutional investors to purchase tokenized shares of money market funds, according to CNBC.

The move brings one of the world’s largest traditional asset classes into the digital age—just as U.S.-regulated stablecoins are gaining traction following President Trump’s signing of the GENIUS Act.

Clients of BNY, the world’s largest custody bank, will now be able to invest in tokenized money market instruments via Goldman Sachs’ proprietary blockchain platform. Ownership of the funds will be digitally recorded, offering a faster, more efficient alternative to traditional fund structures.

BlackRock, Fidelity, Federated Hermes among early participants

The initiative has already attracted major players, including BlackRock, Fidelity Investments, Federated Hermes, and the asset management arms of both Goldman and BNY. These firms will offer money market share classes that can be tokenized—allowing seamless transactions and near-instant settlement.

“This step eliminates the frictions of traditional markets,” said Laide Majiyagbe, BNY’s global head of liquidity, financing, and collateral. “Clients can now invest in tokenized share classes across a range of fund providers.”

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Tokenized funds vs. stablecoins: yield is the key

While stablecoins like USDC and USDP have gained popularity for payments and remittances, they don’t offer yield. Tokenized money market funds, on the other hand, do—making them an attractive option for institutional cash management. Hedge funds, pension funds, and corporations looking to earn short-term yield on idle cash are expected to be among the early adopters.

Unlike cryptocurrencies, money market funds are anchored in ultra-safe instruments like Treasuries, repos, and commercial paper. They offer high liquidity—often allowing redemption within one or two business days—while now gaining the blockchain efficiency advantage.

With this launch, Goldman Sachs and BNY are leading the charge in bridging the gap between traditional finance and blockchain infrastructure, positioning tokenized real-world assets as the next frontier in digital finance.

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