Goldman Sachs Group, Inc and The Bank of New York Melleon (BNY) have joined forces to launch tokenised Money Market Funds (MMFs) on a blockchain. The funds will permit 24/7 trading and real-time settlement.
Clients of BNY Mellon will invest and redeem MMF shares via its market leading LiquidityDirectSM technology, which connects to GS DAP® through integration with BNY’s Digital Assets platform. Ownership of each fund will be recorded on Goldman Sachs’ private blockchain system.
The move reflects growing interest in bringing traditional finance onto digital ledgers. The launch includes support from BlackRock, Fidelity Investments, Federated Hermes, Goldman Sachs Asset Management and BNY Mellon’s asset management arm.
According to a press release, the funds are typically backed by US Treasuries or similar low‑risk instruments. Tokenization allows issuing small, fractional shares and may speed up settlement dramatically.
The initiative follows the passage of the GENIUS Act on 18 July 2025. The Act sets clear rules for stablecoins and bans interest‑bearing stablecoins. Tokenised funds offer a compliant route to yield, with minimal volatility.
A Moody’s report from June 2025 found that tokenised short‑term funds grew from zero to US $5.7 billion in assets since 2021. Demand for tokenised products is rising among traditional asset managers, brokerages and insurers.
These tokenised funds function much like conventional ones but use blockchain to record ownership instantly. This may allow fund managers to buy, sell or settle trades any time, rather than waiting for next‑day processing.
Goldman and BNY Mellon previously took part in Canton Network pilot schemes. That system helped banks, asset managers and custodians settle tokenised assets across a shared ledger.
These efforts reflect a broader push into digital asset markets. Goldman Sachs is preparing up to three tokenisation projects including US fund tokenisation. The bank plans to offer around‑the‑clock on‑chain trading for Treasuries and similar products.
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