BNY and Goldman Sachs have unveiled a groundbreaking initiative that brings blockchain technology into the heart of traditional money market fund (MMF) infrastructure. In a first-of-its-kind move in the U.S., BNY will use Goldman Sachs’ blockchain platform, GS DAP, to mirror customer ownership records of select MMFs through tokenization—paving the way for enhanced transferability and future use of MMF shares as digital collateral. 

The initiative marks the first time that fund managers can enable subscriptions for MMF shares via BNY’s LiquidityDirect platform—now integrated with its Digital Assets platform to connect directly with GS DAP. Mirror tokens representing MMF shares will be created on the blockchain using GS DAP, which is powered by smart contract technology developed by Digital Asset. 

Participating in the pilot launch are major industry players, including BlackRock, BNY Investments’ Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management. 

“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. “Mirrored tokenization of MMF shares is a first step in this transition, and we are proud to be at the forefront of this first-of-its-kind initiative.” 

BNY will continue to serve as the official recordkeeper and settlement provider under existing regulatory frameworks, while also supporting tokenized mirror records on GS DAP. The ultimate aim is to open the door for global scalability and new forms of digital financial interaction. 

Mathew McDermott, Global Head of Digital Assets at Goldman Sachs, emphasized the forward-looking implications: “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.” 

The timing aligns with the recent passage of the GENIUS Act, which creates a regulatory foundation for stablecoins while banning interest-bearing versions. Tokenized MMFs, by contrast, offer yield—positioning them as an attractive alternative for institutional investors seeking yield-bearing, blockchain-based liquidity instruments with low volatility.