Goldman Sachs and Bank of New York Mellon are launching a new system allowing large investors to purchase tokenized money markets, introducing innovation to the fund sector.
Introduction to Tokenization of Money Markets
Goldman Sachs and Bank of New York Mellon announced a system that will allow institutional clients of BNY to invest in tokenized money markets. This development marks the introduction of blockchain technology into the $7.1 trillion money market sector.
BNY Clients Accessing Tokenized Funds
BNY clients will be able to invest in tokenized funds, with ownership recorded directly on Goldman Sachs’ blockchain. Laide Majiyagbe, head of liquidity and collateral at BNY, stated: “We have created the ability for our clients to invest in tokenized money market share classes across a number of fund companies.”
Advantages of Tokenized Funds
Tokenized funds offer more efficient and quicker transactions compared to traditional methods. For instance, redemption times are reduced to instant execution, which is a significant improvement for traders and treasury managers.
The launch of tokenized money markets by Goldman Sachs and BNY Mellon opens new opportunities for investors, providing higher liquidity and transaction speeds that could transform traditional approaches in the financial industry.
