TLDR
- Goldman Sachs and BNY Mellon launched the first U.S. tokenized money market funds on July 23, 2025
- The system uses BNY’s LiquidityDirect platform and Goldman’s Digital Asset Platform for real-time blockchain settlement
- Major firms including BlackRock, Fidelity, and Federated Hermes have joined the rollout
- The launch follows President Trump signing the GENIUS Act on July 18, which created federal stablecoin regulations
- Tokenized funds allow instant trading and enable shares to be used as collateral without selling
Goldman Sachs and Bank of New York Mellon made history this week by launching the first tokenized money market funds in the United States. The announcement came on July 23, 2025, just days after new federal crypto laws took effect.
BNY’s LiquidityDirect and @GoldmanSachs’ Digital Asset Platform have collaborated to launch tokenized money market funds (MMFs). 🤝
This significant initiative sets our clients on a path to access a new capability to increase the utility and potential transferability of MMFs in… pic.twitter.com/WJ1lv7m6T4
— BNY (@BNYglobal) July 23, 2025
The two Wall Street giants created a system that lets institutional investors buy and trade money market fund shares using blockchain technology. This marks a first for U.S. fund managers offering blockchain-based investment products.
The new platform works through BNY’s LiquidityDirect system, which connects to Goldman Sachs’ Digital Asset Platform (DAP). When investors buy fund shares, Goldman creates digital tokens that mirror the real shares on their blockchain network.
BNY Mellon continues managing the underlying funds using traditional methods. The tokens simply create a digital record that matches the actual shares held in custody accounts.
Real-Time Trading and Collateral Benefits
The blockchain system enables instant settlement that works 24 hours a day. Traditional money market funds can take up to two business days for investors to access their money after selling shares.
Matthew McDermott, Goldman’s global head of digital assets, explained the key advantage. Instead of selling fund shares to get cash for collateral, investors can transfer the digital tokens directly.
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