Goldman Sachs and BNY Mellon are set to introduce digital tokens backed by money market fund shares, marking a significant step toward the tokenization of traditional financial instruments.
According to sources familiar with the initiative, the goal is to enable faster settlement times and real-time payment capabilities using blockchain infrastructure. These tokens will represent claims on money market fund assets, allowing institutions to move liquidity more efficiently during after-hours and across different markets.
This move aligns with the broader push by Wall Street giants to digitize financial assets and build private blockchain-based settlement systems, following recent pilot projects by JPMorgan and BlackRock.
While regulatory clarity remains a key concern, both Goldman and BNY are reportedly working closely with U.S. regulators to ensure compliance and eventual scalability.
The initiative could reshape how institutional capital moves globally merging the stability of money market funds with the speed and transparency of blockchain technology.
Sources: Bloomberg, Financial Times, official company disclosures
