BNY Taps Goldman for Blockchain-Based MMF Management
Posted by Colin Lambert. Last updated: July 24, 2025
The Bank of New York Mellon and Goldman Sachs have unveiled a collaborative initiative under which BNY will employ blockchain technology developed by Goldman to maintain a record of customers’ ownership of select Money Market Funds (MMF), in what the banks claim is “a significant step towards enhancing the utility and transferability of existing MMF shares”.
They add the combined solution marks the first time in the US that fund managers have enabled subscription for shares of their MMFs via BNY’s LiquidityDirect and Digital Asset platforms, the corresponding value of which will be represented through mirrored record tokenisation utilising GS DAP. BlackRock, BNY Investments Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management will participate in the initial launch.
“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,” says Laide Majiyagbe, global head of liquidity, financing and collateral at BNY. “Mirrored tokenisation of MMF shares is a first step in this transition. Our collaboration with Goldman Sachs Digital Assets highlights our role as a trusted bridge between traditional finance and emerging technologies – empowering clients to navigate this transformation with confidence.”
BNY will continue to maintain the official books, records, and settlements for the funds within currently approved guidelines while also enabling mirror tokens on GS DAP with the aim of creating future opportunities globally, the banks state.
“Using tokens representing the value of shares of Money Market Funds on GS DAP would enable us to unlock their utility as a form of collateral and open up more seamless transferability in the future,” says Mathew McDermott, global head of digital assets at Goldman Sachs.
