Goldman Sachs and Bank of New York Mellon launch "tokenization money market fund"! Wall Street embraces Blockchain.

Goldman Sachs and BNY Mellon have teamed up to launch a tokenized money market fund that combines blockchain and regulatory trends to bring instant settlement and round-the-clock liquidity to the $7.1 trillion market. (Synopsis: Wall Street's first non-human employee!) Goldman Sachs employs AI engineer Devin to work "more than four times more efficiently" to collaborate with 12,000 developers at the same time) (Background added: Comment: Why Goldman Sachs' judgment on Ethereum is wrong) Goldman Sachs (Goldman Sachs) (BNY with Bank of New York Mellon Mellon) announced that institutional investors can now purchase "tokenized money market funds" directly and log their holdings on Goldman Sachs' self-built blockchain, hosted by Bank of New York Mellon. This is the first time that traditional financial infrastructure has brought a $7.1 trillion money market into a full-time digital ledger. Digital reform of the two giants According to CNBC, the new service has been participated by asset managers such as BlackRock, Fidelity Investments and Hermes of the Federation. After investors purchase fund units, the system immediately generates equivalent tokens, which are settled in real time on the Goldman Sachs chain, and Bank of New York Mellon synchronously updates the custody books. The delivery process, which used to take one or two days, has been compressed into less than a few minutes. Policy thrust It is no coincidence that the two giants have launched services at this moment, and they must have been preparing for a long time. The main reason is the Trump administration's recently signed "GENIUS Act", which defines the compliance framework for regulated stablecoins and other digital assets, clearing regulatory uncertainty for tokenized funds. EXTENDED READING: SWASTIKA ANALYSIS GENIUS The impact of the stablecoin law is far more far-reaching than you think: rewriting financial rules After the law was implemented, hedge funds, pension funds and large corporate CFOs began to look for short-term cash parking points that could "earn interest and preserve value" at the same time. Unlike stablecoins, which only act as a medium of payment, money market funds themselves distribute dividends, attracting money back. About $2.5 trillion has flowed to the money market since the 2022 rate hike cycle, showing huge demand. What are the benefits of tokenization? Tokenized currency funds can bring three direct benefits, the first is instant delivery, token transfer on the chain, synchronous update of fund registration, and reduction of counterparty risk. The second is 24/7 trading, where liquidity can still be dispatched after holidays and close (although this may cause bank spreads after holidays). The third is automated compliance, smart contracts can check traders' qualifications, conditions, etc. in real time, reducing traders' operating costs. Laide Majiyagbe, Global Head of Liquidity, Financing and Collateral, Bank of New York Mellon, emphasized: "We have enabled clients to move tokenized equity across multiple fund issuers, significantly reducing market friction. Mathew McDermott, global head of digital assets at Goldman Sachs, added: The large market size means that tokenized funds are not only investment vehicles, but also act as instant collateral in financial channels. In the future, brokerages can directly put tokenized funds into the counterparty's blockchain wallet, eliminating the process of first redeeming them into cash. While there are more challenges ahead of tokenization, two of Wall Street's most conservative financial institutions have taken the first step. As more fund companies, clearing houses and intermediaries are expected to join, tokenized money market funds are expected to become the first large-scale blockchain applications in traditional finance, and also lay a good experience for future RWA tokenization and CBDC experiments. Related reports xStocks stock tokenization platform hit $300 million in 4-week trading volume, the game has just begun? Goldman Sachs $1.4 billion heavy IBIT! What does it mean for top institutions to buy BTC ETFs? Robinhood CEO on stock tokenization: what people want is "capital as a service" (Goldman Sachs, Bank of New York Mellon launch "tokenized money market fund"! This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".