TLDR:
- Goldman Sachs and BNY Mellon are tokenizing money market funds using GS DAP infrastructure.
- Mirror tokens provide real-time ownership views without altering the underlying fund structure.
- The initiative involves BlackRock, Fidelity, and other asset managers via BNY’s LiquidityDirect.
- Tokenized MMFs may soon be used as collateral, linking traditional assets to digital ecosystems.
Two of the world’s biggest financial institutions are now bridging real-world money markets with blockchain.
Goldman Sachs and BNY Mellon have teamed up to tokenize money market funds (MMFs), unlocking 24/7 access through blockchain infrastructure. The move opens a new path for using tokenized shares as collateral. It also brings traditional assets one step closer to crypto-native use cases.
With over $7 trillion in MMF assets involved, this could reshape how institutions interact with digital finance.
Goldman Sachs and BNY Mellon Collaborate
BNY Mellon confirmed in a press release that it will use Goldman Sachs’ GS DAP platform to create tokenized records of MMF shares.
These mirror tokens won’t replace the actual fund shares but will allow clients to view and transfer ownership in real time on blockchain rails. The integration starts with several heavyweight asset managers, BlackRock, Fidelity, Goldman Sachs Asset Management, and others.
The platform lets users subscribe and redeem MMFs through BNY’s LiquidityDirect system, now linked with the GS DAP tech stack. LiquidityDirect is already a core tool for institutional cash management. This update adds a digital layer without disrupting the original fund structure.
NEWS: Goldman Sachs and BNY to offer tokenized money market funds with 24/7 blockchain-based access. pic.twitter.com/emWsomL3Xs
— CoinGecko (@coingecko) July 23, 2025
According to BNY’s Global Head of Liquidity, Laide Majiyagbe, this change reflects a broader shift toward always-on finance.
She noted that mirror tokens were just the beginning of a roadmap to support real-time digital liquidity. GS DAP enables the mirrored representation of assets, but official records remain with BNY, in line with regulated fund operations.
Goldman’s Head of Digital Assets, Mathew McDermott, added that tokenized MMFs could soon act as collateral. That would make them more versatile and transferable, helping digital markets tap into the utility of traditional assets.
With the tokenization trend gaining traction, this partnership may become a model for future asset flows into crypto.
Real-World Assets Meet Blockchain Utility
This isn’t just a tech update, it’s a bridge. Institutional liquidity is finding new expression through tokenized assets. Crypto investors watching for serious capital inflows into blockchain ecosystems just got a big signal.
@Bitcoinsensus described it as a move that could pull $7.1 trillion into the crypto market. That’s because MMFs, long considered off-limits to digital platforms, now have a tokenized gateway. As this structure evolves, assets once locked in legacy finance may begin flowing into DeFi-compatible systems.
Goldman Sachs & BNY Mellon team up to bring $7.1T into crypto
They’re transforming a massive money market fund using blockchain, a move that could unlock huge liquidity and bridge real-world assets into crypto.
Bullish for #RWAs pic.twitter.com/HCRbAKqkUU
— Bitcoinsensus (@Bitcoinsensus) July 23, 2025
For now, these tokens mirror value and record ownership, but they hint at more. With real assets now on-chain, collateral utility and 24/7 liquidity become real possibilities. This opens up new roles for tokenized MMFs in lending, staking, or settling trades across digital ecosystems.
Crypto is no longer waiting for Wall Street. Wall Street just walked in.
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Source: https://blockonomi.com/goldman-sachs-and-bny-mellon-push-7-1-trillion-money-market-funds-into-blockchain/
