BNY Taps Goldman Tech To Tokenize Traditional Finance—BlackRock, Fidelity Join In

Goldman Sachs GS and BNY BK have introduced a blockchain-powered system to issue digital tokens that mirror shares of money market funds, marking a significant step toward the tokenization of traditional financial assets in the United States.

As part of this initiative, institutional investors can now subscribe to select money market funds via BNY’s LiquidityDirect platform, with mirror tokens issued using Goldman Sachs’ GS DAP® blockchain infrastructure.

These digital representations will reflect the corresponding value of investors’ holdings and allow enhanced visibility, programmability, and potential future transferability of fund shares.

The launch includes participation from several prominent fund managers, such as BlackRock BLK, Fidelity Investments, Goldman Sachs Asset Management, Federated Hermes FHI, and BNY Investments Dreyfus.

BNY will maintain the official records and settlements, while the tokens are created in parallel using GS DAP®, a blockchain platform developed by Goldman Sachs Digital Assets.

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The goal is to improve fund utility in the long term by enabling the shares to potentially be used as collateral and transferred more seamlessly.

"As the financial system transitions toward a more digital, real-time architecture, BNY is committed to enabling scalable and secure solutions that shape the future of finance," said Laide Majiyagbe, Global Head of Liquidity, Financing and Collateral at BNY.

Mathew McDermott, Global Head of Digital Assets at Goldman Sachs, emphasized the broader implications: "Using tokens representing the value of shares of Money Market Funds on GS DAP® would enable us to unlock their utility as a form of collateral."

This marks the first U.S. deployment of mirrored tokenization for MMFs, positioning both financial institutions at the forefront of integrating blockchain into mainstream fund operations.

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