Goldman Sachs and Bank of New York Mellon are collaborating to enable institutional investors to trade money market funds 24/7 using blockchain technology. BlackRock, Federated Hermes, and Fidelity Investments are also on board. Tokenizing these assets aims to increase efficiency and reduce costs in transferring interest-bearing cash instruments, akin to dollar-pegged stablecoins.

BNY will use Goldman’s tokenization platform to manage select money market funds. The move signifies a shift towards digital finance, with a focus on real-time solutions. While BNY will maintain official records and settlement per money market fund guidelines, the collaboration with Goldman marks a notable step in this direction.

Goldman’s tokenization platform, GS DAP, has garnered attention in the industry since its announcement. With over 40 tokenized money market funds in existence, the market is valued at nearly $5 billion. Older financial institutions and newer players like Robinhood, Coinbase, and Circle are eyeing the potential to tokenize various assets, particularly cash instruments, to streamline processes and reduce costs.

In a bid to modernize finance, Goldman Sachs and Bank of New York Mellon are integrating blockchain technology to facilitate round-the-clock trading of money market funds. This collaboration represents a step towards digital transformation in traditional financial institutions, aligning with the growing trend of incorporating blockchain solutions for enhanced efficiency and security in the financial sector.

Read more at Yahoo Finance: Alexander Hamilton’s bank, Goldman Sachs embrace digital tokens to trade money markets 24/7