BNY Mellon and Goldman Sachs have partnered to launch a blockchain-based solution that allows institutional clients to access tokenised money market fund (MMF) shares, in what the companies say is a first-of-its-kind initiative in the United States.
The solution enables institutional investors to subscribe to and redeem MMF shares via BNY Mellon’s LiquidityDirect® platform, with tokenised representations of those shares issued through Goldman Sachs’ GS DAP™, a private blockchain built on the Canton Network. The initiative aims to improve liquidity management, collateral mobility, and interoperability between traditional assets and digital ledgers.
The offering has launched with participation from asset managers including BlackRock, Goldman Sachs Asset Management, Dreyfus, Fidelity, and Federated Hermes, according to a joint press release issued Tuesday by BNY Mellon and Goldman Sachs.
Laide Majiyagbe, Head of Financing and Liquidity at BNY Mellon, said in the statement: “Mirrored tokenisation of MMF shares is a first step in this transition and helps solve industry pain points by enabling clients to experience the benefits of both worlds — familiar MMF investments with the improved operational efficiency and increased utility of digital assets.”
Goldman Sachs’ Global Head of Digital Assets, Mathew McDermott, said the use of tokenised MMF shares could “enable us to unlock their utility as a form of collateral and open up more seamless transferability in the future.”
The tokens issued under the solution are “mirrored” digital representations of fund shares held at BNY Mellon and do not replace the actual assets held in custody. The firms said the tokens are used within permissioned environments and remain subject to standard fund accounting and compliance processes.
The collaboration comes as large financial institutions continue to explore blockchain applications for traditional financial products, particularly in the context of real-world asset tokenisation. The global market for tokenised MMFs is expected to grow as institutions seek faster settlement, 24/7 liquidity, and more efficient use of collateral.
BNY Mellon is the world’s largest custodian bank by assets under custody and/or administration (AUC/AUA), reporting USD 55.8 trillion in AUC/AUA as of 30 June 2025, according to its official website. That figure places it ahead of peers such as State Street and J.P. Morgan.
Both firms indicated that further use cases may emerge from this pilot, particularly in areas such as intraday liquidity and programmable finance.
The solution is currently limited to institutional clients and does not involve public blockchain infrastructure or retail distribution.
