{"id":38490,"date":"2025-07-24T05:01:32","date_gmt":"2025-07-24T05:01:32","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=38490"},"modified":"2025-07-24T05:01:32","modified_gmt":"2025-07-24T05:01:32","slug":"goldman-sachs-partners-with-bny-mellon-to-bring-7-trillion-money-market-to-crypto","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=38490","title":{"rendered":"Goldman Sachs Partners With BNY Mellon To Bring $7 Trillion Money Market To Crypto"},"content":{"rendered":"
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The growing intersection between traditional finance and digital asset infrastructure has taken another step forward, as Goldman Sachs and BNY Mellon announced a joint initiative aimed at integrating blockchain technology into the money market fund (MMF) ecosystem.<\/p>\n

The collaboration will see BNY Mellon leverage Goldman Sachs\u2019 GS DAP\u00ae (also known as its private blockchain) to maintain a mirrored tokenized record<\/a> of customer ownership in select MMFs. This marks the first instance in the United States where mirrored tokenization will be used to reflect ownership in MMFs through a blockchain-based ledger.<\/p>\n

The rollout includes major asset managers such as BlackRock, BNY Mellon Investment Management\u2019s Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management.<\/p>\n

Investors will now be able to subscribe to and redeem MMF shares using BNY\u2019s Liquidity management platform, which has been integrated with its digital assets platform to connect with the private blockchain<\/a>.<\/p>\n

The mirror tokens created on the Goldman Sachs\u2019 private blockchain platform do not replace official records but serve as a complementary layer that increases the accessibility and potential use cases of MMF shares in a digitized financial ecosystem.<\/p>\n

Blockchain Integration to Expand MMF Utility<\/h2>\n

The mirrored tokenization of MMF shares using blockchain represents a new model for fund management infrastructure. Although the underlying assets remain managed through traditional custodial and compliance channels, the blockchain layer enhances interoperability and real-time transferability.<\/p>\n

Goldman Sachs\u2019 GS DAP\u00ae, is built on smart contract technology from the startup Digital Asset and offers programmable finance functionality for institutions.<\/p>\n

BNY Mellon\u2019s LiquidityDirectSM platform is also one of the leading portals for institutional cash investors, and the integration of the private blockchain opens the door to extending MMF shares into use cases like collateral optimization and intraday liquidity management.<\/p>\n

According to Laide Majiyagbe, BNY Mellon\u2019s Global Head of Liquidity, Financing and Collateral, \u201cMirrored tokenization of MMF shares is a first step in this transition,\u201d noting the company\u2019s position as a link between established financial systems and new technology.<\/p>\n

GS DAP\u00ae was previously piloted for bond issuance on blockchain networks<\/a> in Asia and Europe. Its adaptation for MMF share representation in the US signals a broader vision for tokenizing real-world assets beyond equities and debt, potentially reshaping capital markets infrastructure.<\/p>\n

This particular use case focuses on liquidity and settlement efficiency in short-term investment vehicles, valued at over $7 trillion globally, according to ICI data.<\/p>\n

A Step Toward Collateral Utility and Global Scalability<\/h2>\n

Mathew McDermott, Global Head of Digital Assets at Goldman Sachs, emphasized the potential benefits of using tokenized MMF shares as collateral in various trading<\/a> and settlement contexts.<\/p>\n

\u201cUsing tokens representing the value of shares of Money Market Funds on GS DAP\u00ae would enable us to unlock their utility as a form of collateral and open up more seamless transferability in the future,\u201d he said in a statement.<\/p>\n

BNY Mellon will continue to serve as the official recordkeeper, maintaining existing regulatory compliance and settlement protocols. However, the addition of tokenized mirrors creates new flexibility for financial institutions seeking to modernize collateral management<\/a> and liquidity strategies.<\/p>\n

While this initiative currently focuses on US MMFs, both institutions signaled interest in expanding the model globally, potentially applying similar technology to other fund structures and asset classes.<\/p>\n

\"The<\/p>\n

Featured image created with DALL-E, Chart from TradingView<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The growing intersection between traditional finance and digital asset infrastructure has taken another step forward, as Goldman Sachs and BNY Mellon announced a joint initiative aimed at integrating blockchain technology into the money market fund (MMF) ecosystem. The collaboration will see BNY Mellon leverage Goldman Sachs\u2019 GS DAP\u00ae (also known as its private blockchain) to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-38490","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/38490","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=38490"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/38490\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=38490"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=38490"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=38490"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}