BNY Mellon & Goldman Sachs Launch $7T Fund Tokenization
BNY Mellon and Goldman Sachs have unveiled a digital asset tokenization initiative targeting the $7 trillion fund market. The platform leverages a private blockchain and smart contracts to automate fund share issuance, subscriptions and redemptions. It enables 24/7 trading, on-chain ownership records and near-instant settlement, reducing operational costs and enhancing liquidity.
Launched through BNY Mellon’s Digital Asset Custody and Administration service and Goldman Sachs Asset Management’s first client integration, the digital asset tokenization solution supports money market funds as collateral in digital asset trades. Final settlements and compliance checks remain within traditional systems, preserving regulatory standards.
Scheduled for rollout in 2024, this blockchain finance innovation opens fractional access to high-value funds and paves the way for broader institutional adoption of digital asset tokenization across traditional finance.
Bullish
This initiative is bullish for the crypto market because it drives institutional demand for tokenized assets and enhances liquidity. In the short term, traders may leverage tokenized money market funds as collateral, boosting on-chain trading volumes. Over the long term, broad institutional adoption of digital asset tokenization could lower transaction costs, improve settlement efficiency and expand the use of blockchain-based financial products, reinforcing overall market growth.