Goldman Sachs and BNY Mellon have partnered to pilot tokenized money market funds, signaling a deeper push into blockchain-based finance by two of Wall Street’s most established institutions. The collaboration is being developed within the Canton Network, a privacy-enabled blockchain infrastructure tailored for institutional applications. The initiative aims to modernize how money market funds are managed, settled, and integrated into broader financial ecosystems.
Tokenized money market funds could offer more efficient solutions for real-time collateral mobility and liquidity management. By digitizing fund shares on a secure distributed ledger, both banks are exploring how blockchain can reduce friction, settlement times, and operational risks associated with traditional finance. The Canton Network facilitates interoperability between financial institutions while maintaining data confidentiality — a key requirement for regulated entities.
This move comes amid a wider industry trend of experimenting with asset tokenization. Other major players like BlackRock and JPMorgan have already made strides in tokenizing funds and bonds, citing benefits like faster settlements, increased transparency, and lower operational costs. Analysts project the tokenized asset market could reach into the trillions over the next decade, with money market funds serving as an accessible entry point for institutional experimentation.
While the project is still in its early stages, the involvement of Goldman Sachs and BNY Mellon signals growing institutional conviction in the long-term promise of blockchain infrastructure. If successful, these tokenized products could mark a shift in how financial instruments are issued, traded, and reconciled in the future.
