Goldman Sachs, BNY Mellon go all in on $7 trillion tokenized money market
The post Goldman Sachs, BNY Mellon go all in on $7 trillion tokenized money market appeared on BitcoinEthereumNews.com. Goldman Sachs and Bank of New York Mellon are rolling out a system that lets big investors buy tokenized money market funds. According to both firms, institutional clients of BNY will now be able to invest in these funds, and ownership will be recorded directly on Goldman Sachs’ blockchain. This brings blockchain smack into the center of the $7.1 trillion money market fund sector. And no, they’re not going at it alone. Giants like BlackRock, Fidelity Investments, and Federated Hermes are already onboard. Plus, the asset management arms of Goldman Sachs and BNY are part of the deal. The tech, the money, and the muscle are already lined up. Let’s talk about the actual market here. Money market funds are mutual funds that usually hold short-term assets like Treasuries, commercial paper, or repurchase agreements. They’re seen as ultra-safe and super liquid, which is why investors have thrown about $2.5 trillion into them since the Fed started jacking up rates in 2022, according to data from CNBC. BNY clients to access tokenized funds via Goldman’s blockchain Just last week, President Donald Trump signed the GENIUS Act, which finally brought stablecoins into the U.S. legal framework. That opened the floodgates. JPMorgan Chase, Citigroup, and Bank of America said they’re now actively exploring stablecoin payments. But unlike stablecoins, which just track the U.S. dollar, tokenized money market funds pay a yield. That alone makes them way more attractive to hedge funds, pension managers, and corporate treasurers looking for safe places to stash large sums of cash. Think of it as parking cash with benefits. Laide Majiyagbe, who leads liquidity and collateral at BNY, explained it this way: “We have created the ability for our clients to invest in tokenized money market share classes across a number of fund companies.” She added, “The step…
The post Goldman Sachs, BNY Mellon go all in on $7 trillion tokenized money market appeared on BitcoinEthereumNews.com.
Goldman Sachs and Bank of New York Mellon are rolling out a system that lets big investors buy tokenized money market funds. According to both firms, institutional clients of BNY will now be able to invest in these funds, and ownership will be recorded directly on Goldman Sachs’ blockchain. This brings blockchain smack into the center of the $7.1 trillion money market fund sector. And no, they’re not going at it alone. Giants like BlackRock, Fidelity Investments, and Federated Hermes are already onboard. Plus, the asset management arms of Goldman Sachs and BNY are part of the deal. The tech, the money, and the muscle are already lined up. Let’s talk about the actual market here. Money market funds are mutual funds that usually hold short-term assets like Treasuries, commercial paper, or repurchase agreements. They’re seen as ultra-safe and super liquid, which is why investors have thrown about $2.5 trillion into them since the Fed started jacking up rates in 2022, according to data from CNBC. BNY clients to access tokenized funds via Goldman’s blockchain Just last week, President Donald Trump signed the GENIUS Act, which finally brought stablecoins into the U.S. legal framework. That opened the floodgates. JPMorgan Chase, Citigroup, and Bank of America said they’re now actively exploring stablecoin payments. But unlike stablecoins, which just track the U.S. dollar, tokenized money market funds pay a yield. That alone makes them way more attractive to hedge funds, pension managers, and corporate treasurers looking for safe places to stash large sums of cash. Think of it as parking cash with benefits. Laide Majiyagbe, who leads liquidity and collateral at BNY, explained it this way: “We have created the ability for our clients to invest in tokenized money market share classes across a number of fund companies.” She added, “The step…
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