Goldman Sachs and BNY eye tokenisation for $7.1 trillion money market industry

Wall Street heavyweights Goldman Sachs and BNY have plans to dive headfirst into the future of finance by targeting tokenisation for the $7.1 trillion money markets industry.

Goldman Sachs and BNY are joining forces to launch a tokenised assets solution aimed at redefining institutional foray into tokenised money markets, according to a report by CNBC.

The initiative, per the report, has attracted major players across the asset management space, including BlackRock, Fidelity Investments, and Federated Hermes.

Big move by Goldman Sachs and BNY

What Goldman Sachs and BNY eye for the $7.1 trillion money markets ecosystem is a project that will see global hedge funds, pensions, and corporations take on the benefits of on-chain funds.

BNY is the world’s largest custody bank, and this move means its clients can now invest in money market funds that tap into Goldman’s blockchain platform.

Simply, a BNY customer has the opportunity to invest in and earn yield from tokenised money market funds, all with records on Goldman Sachs’ blockchain.

The report comes a few days after the US stablecoin market received a major boost with the GENIUS Act.

After the US House passed the bill, President Donald Trump signed it into law, heralding what experts say could be an explosive growth period for crypto innovation and adoption.

Institutional influx into the sector, including via tokenised US Treasuries, commodities and private credit, has the market abuzz. 

Laide Majiyagbe, BNY’s global head of liquidity, financing, and collateral, told CNBC, 

“We have created the ability for our clients to invest in tokenized money market share classes across a number of fund companies. The step of tokenizing is important, because today that will enable seamless and efficient transactions, without the frictions that happen in traditional markets.”

Financial plumbing

Notably, tokenising assets, including money market funds, does not mean just slapping a digital label on a real-world asset.

It goes beyond the digital certificate of ownership to an on-chain transformation that unlocks several key benefits. 

Other than 24/7 trading and near-instant settlement, there’s automation and transferability.

Institutional investors looking to tap into these are the main reason for the growing exposure to this new asset class – a market experts say could jump to trillions of dollars.

Mathew McDermott, Goldman’s global head of digital assets, said:

“The sheer scale of this market just offers a huge opportunity to create a lot more efficiency across the whole financial plumbing. That is what’s really powerful, because you’re creating utility in an instrument where it doesn’t exist today.”

According to data from rwa.xyz, the global tokenised real-world assets market currently stands at around $24.96 billion.

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