BNY Mellon and Goldman Sachs have partnered to tokenize ownership records of select money market funds using Goldman’s blockchain infrastructure, enabling faster settlements and 24-hour trading.

This initiative is part of BNY's LiquidityDirectSM and Digital Assets platform, allowing institutional investors to subscribe and redeem shares more efficiently while maintaining regulatory compliance.

The tokenized funds aim to transform the $7.1 trillion money market industry by providing real-time settlement, reducing operational delays, and facilitating direct transfers between institutions.

Major financial firms like BlackRock, Fidelity, and Federated Hermes are involved, with clients able to invest in these innovative funds, signaling broad institutional interest.

The move follows the passage of the GENIUS Act, signed into law on July 18, 2025, which clarifies regulation for digital assets and positions tokenized money market funds as attractive yield-generating alternatives.

Goldman Sachs' head of Digital Assets highlighted that tokenization could enable new applications, such as using fund shares as collateral, and improve transferability across global markets.

This development occurs amid a broader crypto market resurgence, driven by institutional demand and regulatory clarity, with Ethereum experiencing a 65% price increase due to widening demand-supply gaps.

The recent passage of the GENIUS Act and the signing of a new crypto bill have fostered a favorable environment for blockchain innovation and stablecoin regulation.

Investors and market watchers are closely monitoring upcoming economic indicators like U.S. jobless claims and home sales to gauge macroeconomic sentiment amid these financial innovations.

Macro investor Dan Tapiero has launched a $500 million growth fund, projecting the crypto market could reach a valuation of $50 trillion in the next decade, doubling previous estimates.

Crypto companies like MARA Holdings plan to raise significant capital, such as $850 million through convertible notes, to expand bitcoin holdings and improve financial stability.

The initiative signifies a major step in transforming traditional finance, with tokenized funds offering benefits like enhanced capital efficiency and arbitrage opportunities during rate volatility.

BNY Mellon’s Laide Majiyagbe emphasized that this is just the beginning of a broader digital transformation, with tokenization facilitating seamless, efficient transactions and moving toward a digital financial architecture.