BNY and Goldman Sachs launch tokenised MMF solution using GS DAP® - Trade Treasury Payments

BNY and Goldman Sachs have launched a new blockchain-based solution enabling the tokenisation of money market fund (MMF) shares, a first for the U.S. market. The initiative, announced on 23 July 2025, allows fund managers to offer tokenised MMF shares via BNY’s LiquidityDirectSM and Digital Assets platforms, using Goldman Sachs’ proprietary GS DAP® technology.

Under the model, mirrored tokens represent customers’ holdings of select MMFs, maintained on a blockchain while BNY continues to hold the official books and records under existing regulatory frameworks. The integration combines BNY’s LiquidityDirectSM platform with Goldman Sachs Digital Assets’ infrastructure and leverages technology developed by Digital Asset.

The tokenised shares remain redeemable through traditional processes, but their mirrored blockchain representations open new use cases — including 24/7 trading, faster settlement, reduced operational overheads, enhanced auditability, and future collateral mobility.

Laide Majiyagbe, Global Head of Liquidity, Financing and Collateral at BNY, said, “Mirrored tokenisation of MMF shares is a first step in the transition toward a more digital, real-time financial system.”

The launch has attracted support from leading asset managers including BlackRock, BNY Investments Dreyfus, Federated Hermes, Fidelity, and Goldman Sachs Asset Management.

Matthew McDermott, Global Head of Digital Assets at Goldman Sachs, said, “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.”

This development marks a notable shift toward institutional-grade tokenisation in regulated finance, as firms explore scalable use cases for blockchain in liquidity management, asset servicing, and collateral optimisation.