Goldman Sachs and Bank of New York Mellon are introducing tokenized money market funds for institutional investors. Clients of BNY can invest in funds recorded on Goldman’s blockchain platform. Major players like BlackRock and Fidelity Investments are already on board. The move follows the signing of the GENIUS Act by President Donald Trump, boosting stablecoin popularity.

Tokenized money market funds offer yields unlike stablecoins, attracting hedge funds and corporations. This innovation streamlines transactions and sets the stage for a digital ecosystem for money market funds. The funds could also serve as collateral for trades without needing to liquidate into cash. Institutional and retail investors have poured $2.5 trillion into money market funds since the Fed’s rate-hiking cycle.

Goldman Sachs and Bank of New York Mellon believe tokenizing the $7.1 trillion money market industry will revolutionize digital assets. This development aims to enhance efficiency and utility across financial markets. The project has garnered interest from major financial players and is viewed as a significant step towards a more streamlined financial ecosystem.

Read more at CNBC: Goldman Sachs, BNY introduce money market fund digital tokens