Goldman Sachs and BNY Mellon prepare to offer institutional investors the opportunity to invest in tokenized money market funds, which could reshape the financial markets and enhance their efficiency.
Tokenized Money Market Funds from BNY Mellon
Clients of BNY Mellon, the world’s largest custodian bank, will soon be able to invest in money market funds whose ownership is recorded directly on Goldman Sachs’ private blockchain. '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.
The GENIUS Act and Its Impact
The development of tokenized funds comes in the wake of the recently signed GENIUS Act, which establishes a regulatory framework for stablecoins in the US. This bill, passed with more than 300 House votes, bans interest-bearing stablecoins but offers yield through tokenized money market funds, giving hedge funds and pension funds a new tool for managing idle cash.
Competition in Capital Markets and New Technologies
Earlier this month, Robinhood CEO Vlad Tenev detailed plans for 'Robinhood Chain,' allowing users to trade tokenized stock derivatives directly on the blockchain. According to Galaxy Digital, this move directly challenges the traditional markets like the NYSE, changing the liquidity dynamics.
Tokenization of money and investments continues to gain traction, and with the launch of new initiatives from major financial players, the capital market may become more accessible and efficient.
