CNBC: Goldman Sachs and BNY Mellon to Offer Tokenized Money Market Fund with $7.1 Trillion in Assets

BlockBeats News, July 23rd, according to CNBC reports, Goldman Sachs and BNY Mellon are about to announce that they have enabled institutional investors to purchase tokenized money market funds. According to executives from both companies, BNY Mellon's clients, as the world's largest custody bank, will be able to invest in money market funds whose ownership is recorded through the Goldman Sachs blockchain platform.

This project has attracted a group of fund giants, including BlackRock, Fidelity Investments, Federated Hermes, as well as the asset management divisions of Goldman Sachs and BNY Mellon.

Wall Street giants believe that following President Trump's signing of the new law last week, known as the GENIUS Act, which marks the arrival of regulated stablecoins in the United States, the tokenization of the $7.1 trillion money market fund is the next major leap in the digital asset space. The law is expected to drive the adoption of stablecoins (usually pegged to the dollar) in practical use. JPMorgan Chase, Citigroup, and Bank of America have all stated that they are exploring the use of stablecoins in payment scenarios.

However, unlike stablecoins, tokenized money market funds can provide holders with yield, making them a more attractive "cash parking" option for hedge funds, pension institutions, and corporations.