Goldman Sachs Asset Management (GSAM) has become the latest investment manager to embrace the shift towards tokenised money market funds (MMFs), through a new blockchain-powered subscription model jointly announced with custodian BNY.
The solution integrates BNY’s LiquidityDirectSM platform and digital assets capabilities with Goldman Sachs’ GS DAP® blockchain infrastructure. According to the firms, this marks the first time in the US that institutional investors can subscribe to select MMFs using tokenised mirror representations of fund ownership.
“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, financing and collateral at BNY Mellon.
“Mirrored tokenisation of MMF shares is a first step in this transition,” she added.
Participating firms in the initial rollout include BlackRock, BNY Investments Dreyfus, Federated Hermes, Fidelity Investments and Goldman Sachs Asset Management.
Goldman Sachs claimed its GS DAP® platform would enable mirror tokens to support future collateral use cases.
“Using tokens representing the value of shares of MMFs on GS DAP® would enable us to unlock their utility as a form of collateral and open up more seamless transferability in the future,” said Mathew McDermott, global head of digital assets at Goldman Sachs.
The companies claim the approach preserves existing MMF recordkeeping practices while positioning blockchain technology to enhance functionality for institutional investors. A wider launch timeline has not been announced.
Learn about UK investor LGIM’s MMF journey from the launch issue of Capital Pioneer here.
