Goldman Sachs and BNY Mellon to Offer Tokenized Funds to Clients

American financial giants Goldman Sachs and BNY Mellon have announced a joint initiative to provide institutional investors with access to tokenized funds.

According to the press release, BNY Mellon will utilize blockchain technology developed by Goldman Sachs to manage client rights for selected products.

The initial launch will involve BNY Investments Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management.

“As the financial system transitions to a more modern digital architecture, BNY aims to deliver scalable and secure solutions that shape the future of finance. The mirror tokenization of money market fund (MMF) shares is the first step in this transformation,” said BNY’s Head of Liquidity, Financing, and Collateral, Laide Majiyagbe.

Investors can subscribe to and redeem MMF shares through the blockchain-connected BNY LiquidityDirect platform. Mirror tokens of securities are created on Goldman Sachs’ GS DAP.

A wave of crypto-related announcements from major companies followed the signing of the GENIUS Act by U.S. President Donald Trump, which establishes rules for stablecoins and is the first significant regulatory act for the crypto industry in the country.

Earlier in January, Goldman Sachs CEO David Solomon stated that he still considers Bitcoin a speculative asset.